Bullish Telecoms Lift China Stocks Amid Trump Cabinet Tensions

China stocks closed higher as telecom gains buoyed the market, despite geopolitical concerns surrounding Trump's cabinet picks. The CSI 300 and Shanghai Composite both improved, while Hong Kong's Hang Seng remained slightly down. Market sentiment was influenced by Nomura's upgraded economic growth forecasts and political uncertainties in the U.S.

Telecom companies bolstered China stocks on Wednesday, offsetting earlier declines as investor attention remains on upcoming U.S. cabinet appointments. Notably, China's blue-chip CSI 300 climbed 0.6%, having initially dropped by the same margin during the trading session.

Despite a recovery, Hong Kong's Hang Seng Index settled slightly lower, hovering near a seven-week low. The communication sector's rally stemmed from China Unicom's 7.3% surge and China Mobile's 4.2% rise, driving mainland shares upward.

Further optimism came as Nomura increased its China growth forecast, citing an uptick in economic activity. Investors remain cautious about Trump's choice of China hawks for his cabinet, which could affect U.S.-China relations and market sentiment.

(With inputs from agencies.)