Published on 07/23/2026 at 04:49 am EDT
(Reuters) - Chinese stocks reversed earlier losses to close higher on Thursday as sentiment recovered from the recent AI-led correction, while investors continued to rotate into defensive plays.
** The Shanghai Composite Index closed up 0.3% at 3,876.78 points. The blue-chip CSI300 index was up 0.2%.
** The banking sector added 0.6%, leading gains. The defence sector strengthened 2% and rare earth stocks added nearly 3%.
** Among other gainers, the CSI Shanghai-Shenzhen-Hong Kong Gold Industry Equity Index jumped 1.6% as gold rallied. The new energy vehicle sector climbed 3.6% despite new U.S. restrictions, while new energy stocks jumped 3.7%.
** The correction in the tech sectors also eased, with the tech-focused

STAR

50 Index narrowing losses to 3.8%. The AI sector declined 2.5%.
** "The recent drop in A-shares is mostly a 'passive' reaction to external risks," analysts at Datong Securities said in a note. "Looking at market conditions, the pullback has already released a lot of pressure from leveraged trading and negative sentiment, and technical indicators suggest stocks may be oversold."
** Meanwhile, regulators have been holding frequent meetings to signal stability, and listed companies are actively buying back shares and increasing their holdings. With support building on multiple fronts, market confidence should get a boost, they added.
** In Hong Kong, the Hang Seng Index was up 1.3% at 25,210.81. The Hang Seng Tech Index added 0.7%.
** Market heavyweight Tencent bounced 1% after shedding more than 7% in the previous session.
** Around the region, stocks rose on Thursday after U.S. technology firms outlined significant capital spending plans that are likely to benefit chipmakers in the region, while the escalating war in the Middle East sent oil prices to six-week highs.
(Reporting by Jiaxing Li in Hong Kong; Editing by Mrigank Dhaniwala and Sonia Cheema)

Sumber : Reuters