Chinese Stocks Rise on Good Economic News, Hopes for Imminent End to Iran War

China's stock markets extended gains this week amid some positive signs that an end to the Iran war may be nigh and positive data on the Chinese economy.

The benchmark Shanghai Composite Index wrapped up the week with a 1.6 percent increase despite a 0.1 percent dip on Friday. The Shenzhen Component Index increased 4 percent for the week, and the tech-focused ChiNext jumped 6.6 percent.

"This round of growth is mainly driven by the better-than-expected economic data," said Huang Wenjing, an analyst with China International Capital Corp. "Market sentiment improved a lot because investor concerns about the impact of the Iran war on China were eased."

China released data this week showing first-quarter gross domestic product beat expectations with a 5 percent rise from a year earlier, industrial production up 6.1 percent and retail sales rising 2.4 percent. That followed data showing a 15 percent record surge in export volume.

Tech-related shares continued to lead gainers this week, with Yuanjie Semiconductor Technology surpassing spirits distiller Kweichow Moutai to become the most expensive Class-A share. Yuanjie jumped by the daily limit of 10 percent on Friday to 1,445 yuan (US$212), with Kweichow Moutai losing 3.8 percent to 1,407 yuan after reporting profit and revenue declines for 2025.

Battery giant Contemporary Amperex Technology (CATL) jumped 5.3 percent on Thursday after reporting a sharp rise in first-quarter earnings due to strong demand from the electric-vehicle industry for power batteries. Net profit surged 49 percent from a year earlier to 21 billion yuan on a 53 percent increase in revenue to 129 billion yuan.

Shares in Shanghai-based Sigenergy, a maker of energy storage systems, doubled from their offer price in the company's trading debut in Hong Kong on Thursday following a HK$4.4 billion (US$562 million) initial public offering. Sigenergy claimed the distinction of being the fastest Chinese company to go from founding to listing, a timeframe of just under four years.

Hong Kong's Hang Seng Index edged up 1 percent last week. Japan's Nikkei rose 2.7 percent, and South Korea's Kospi jumped 5.7 percent.

On Wall Street on Friday, stocks soared after a temporary ceasefire in Israel's war against Lebanon held for its first day and Iran announced it was opening the Strait of Hormuz to all commercial shipping for the duration of the truce. US President Donald Trump expressed confidence that a deal can be struck with Iran in a second round of talks due to start.

The broad S&P 500 index jumped 1.2 percent to a record, and the Nasdaq delivered its 13th consecutive day of gains, its longest winning streak since 1992. Oil prices plummeted, with benchmark Brent futures closing the week at US$90.38 a barrel in New York. However, spot prices remained above US$100 as the war enters its eighth week.