- On Thursday, China's stock market Shanghai Composite Index slightly rose, led by technology stocks. Strong financial forecasts from Micron Technology (MU:US) and Qualcomm (QCOM:US) injected new momentum into the global artificial intelligence boom, driving significant gains in the semiconductor and 5G communication sectors.
- The SSE STAR 50 Index (000688:SH) surged 3.87% during the day, reaching a new historical high, while the CSI 300 Index (399300:SS), representing large-cap blue chips, also rose by 1.56%, highlighting the trend of market funds concentrating in the hard-core technology sector.
- Geopolitical uncertainties suppressed the performance of commodities. U.S. officials sought ally support for a new Middle East agreement in the Gulf region, while Israel's military stance complicated the situation, significantly pressuring traditional non-ferrous metals and energy sectors.
Tech Giants' Financial Forecasts Rekindle AI Momentum
Driven by the strong performance outlook released by chip giants Micron Technology and Qualcomm after the U.S. stock market closed overnight, concerns about global semiconductor industry demand for artificial intelligence were significantly alleviated. On Thursday, Asian tech stocks strengthened across the board, with notable gains in Japanese and Korean stock markets. This surge in the overseas semiconductor sector, with a post-market valuation increase of over $400 billion, directly catalyzed bullish sentiment in the A-share technology sector, reinvigorating funds into AI concept stocks whose momentum had recently slowed.
Hard Technology Sector Achieves New Historical Highs
Under the strong stimulus of external favorable factors, domestic funds accelerated their flow into the hard-core technology track. The CSI Semiconductor Industry Index (.CSI931865) and the CSI 5G Communication Index (931079:SH) both rose, closing up 3.3% and 3.8% respectively, both reaching new historical closing highs. Among the component stocks, leading communication equipment company New EasTech (300502:SZ) surged 9.9% at the close. Private investment institutions in East China pointed out that the current A-share market style is rapidly shifting towards the hard technology sector with core barriers, and it is expected that this round of technology-centered structural market will continue.
Seesaw Effect Pressures Cyclical Sectors
In stark contrast to the strong performance of the technology sector, traditional cyclical sectors related to commodities experienced capital outflows. The CSI Subdivision Non-ferrous Metals Industry Theme Index (000811:SH) fell 3.2% throughout the day, and the CSI 300 Energy Index (000908:SH) also declined. Analysts pointed out that the position swap between growth stocks and cyclical stocks by bullish funds created a clear seesaw effect, coupled with some profit-taking, leading to a short-term valuation adjustment in the non-ferrous and energy industries.
Geopolitical Uncertainty Disrupts Global Risk Appetite
At the macro level, the latest developments in the Middle East geopolitical situation are complex. Senior U.S. government officials are seeking ally support for a new war-ending agreement in the Gulf region. Although officials claim progress has been made and relevant parties have made concessions, Israel's insistence on stationing troops in southern Lebanon adds uncertainty to the agreement's prospects. This dynamic evolution of the international geopolitical situation has, to some extent, suppressed global commodity risk appetite, thereby exerting cross-transmission pressure on the upstream resource sector of the A-share market.
