Aug 26, 2025, 11:41 GMT+7
(Reuters) -China shares edged higher on Tuesday in volatile trading, with consumption stocks leading the gains, as investors rotated into under-bought sectors after the recent blistering rally.
** At the midday break, the Shanghai Composite Indexwas up 0.1%, hitting a fresh decade high after falling as much as 0.6% earlier in the session.
** China's blue-chip CSI300 Indexalso climbed up 0.1%, touching a new high since July 2022.
** Sentiment appeared to have turned more cautious as technical indicators began to show some early signs of exhaustion following a some 25% rebound in Shanghai's stock benchmark from the April low.
** Its relative strength index, for example, is now at 87.9, well above the 70 level that many analysts consider indicative of an overheated market.
** "After a solid run in Chinese equities, it's only natural to question whether this momentum will continue," Herald van der Linde, head of equity strategy, Asia Pacific at HSBC , said in a note.
** However, rising earnings, reasonable valuations, policy support, and a massive cash pile that earns very little at Chinese banks are all supportive of equities, he said.
** Leading gains onshore, the consumer staples sectorjumped 1.8%, while the oil and gas industry index (. CSIH 30198) added 1% and the liquor indexgained 0.7%.
** The semiconductor sector (.CSI931865) recovered from an earlier loss of around 2% to end the morning session up 0.6%. Chipmaker Cambriconweakened 3.4% to pull back from an all-time high.
** Weighing on markets, the real estate sectorlost 0.7% to give up some gains sparked by Shanghai's latest efforts to boost the housing market.
** The rare earth sectorslid nearly 2% to pull back from a four-year high, after U.S President Donald Trump said China has to give the U.S. magnets or face 200% tariff.
** In Hong Kong, the Hang Seng China Enterprises Indexlost 0.1%, and the benchmark Hang Seng Indexweakened 0.2%.
** HSBC has raised its year-end targets for the HSCE and HSI indexes, suggesting around 7% additional upside from current levels

Sumber : Reuters