02.06.202602:14:35UTC+00China Stocks Extend Decline

The Shanghai Composite slipped 0.2% to 4,053 on Tuesday, extending the previous session’s losses and closing at its lowest level in more than a month. The Shenzhen Component fell 0.6% to 15,263, marking a third straight decline and likewise hitting a one-month low. Sentiment remained cautious as diplomatic efforts to secure a US–Iran peace agreement stalled.

Conflicting statements from US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu about recent talks on the conflict in Lebanon highlighted the uncertainty surrounding negotiations. This added to investor worries over the broader geopolitical backdrop as the conflict entered its fourth month.

Losses were led by Semiconductor Manufacturing International Corp. (-1.5%), Luxshare Precision Industry (-1.3%), Victory Giant Technology (-1.5%), and Weichai Power (-8.9%). In contrast, continued optimism around artificial intelligence supported select technology names, with Zhongji Innolight rising 1.4% and Eoptolink Technology gaining 4.1%.