China Boosts Market Stability Amidst Trade War Tensions

China's stock markets saw gains after Premier Li Qiang urged officials to stabilize share prices amidst trade war fears. The CSI300 and Shanghai Composite Index reached two-week highs, driven by state interventions. Analysts anticipate further government stimulus as the trade standoff with the U.S. continues.

China's stock markets rallied to a two-week high on Monday following Premier Li Qiang's call for decisive action to stabilize shares amidst escalating trade war concerns. The urging comes as China's CSI300 Index closed up 0.3%, and the Shanghai Composite Index climbed 0.5%, marking the highest points since early April.

Financial markets responded with caution as fears over the protracted trade war with the United States loom large. Non-ferrous metals surged by 4% due to a weaker dollar and rising gold prices. Meanwhile, China maintained its benchmark lending rates steady for the sixth consecutive month, aligning with market expectations.

Market observers are now eyeing the upcoming Politburo meeting for potential policy directions, as immediate stimulus seems unlikely. The resilience of A-shares has been notably bolstered by state-backed funds since early April's trade turbulence initiated by U.S. tariff announcements.

(With inputs from agencies.)