| China's stock markets moved higher on Monday, with the Shanghai Composite climbing 0.76% to a one-month high of 4,082, while the Shenzhen Component rose 0.55% to 14,966, its strongest level since December 2021. The gains came after the People's Bank of China reiterated its 'supportive' and 'moderately loose' policy approach to help sustain economic growth while keeping the currency stable. The one-year loan prime rate stayed at 3%, and the five-year rate remained at 3.5%, marking the 11th straight month without any change and keeping both at record lows. While signs show that deflation is easing and growth is gradually stabilising, policymakers are still cautious due to global uncertainties, including rising tensions in the Middle East. Financial stocks led the rally, with gains seen in Industrial and Commercial Bank of China, Agricultural Bank of China, and China Construction Bank Corporation. Other notable performers included Midea Group and Luxshare Precision Industry. |