(Update to market close)
HONG KONG, April 22 (Reuters) - China stocks edged up to a three-month high on Wednesday, led by artificial intelligence and chip sectors, as the extended Iran ceasefire offered some limited respite with peace talks still hanging in the balance.
The blue-chip CSI300 index (.CSI300) added 0.7% at market close after hitting its strongest level since January 14.
The Shanghai Composite index (.SSEC) closed 0.5% higher at 4,106.26, its third straight session of gains.
Tech sectors led gains onshore, with the AI industry index (.CSI930713) adding 3.3% and chip sector index (.CSI931865) gaining 2.9%. The CSI 5G Communications Index (.CSI931079) climbed 5.1%.
ChiNext Index (.CNT) , a Nasdaq-style second board for startups, added 1.7% to the highest level since 2015.
U.S. President Donald Trump said he would indefinitely extend the ceasefire with Iran to allow for further peace talks. Although it was not clear on Wednesday whether Iran or Israel would agree, investors largely took heart from the development.
“Middle East geopolitical risks are gradually easing, and the market is becoming increasingly desensitised to geopolitical conflicts,” analysts at Nanhua Futures wrote in a note.
“Markets are now building an upward momentum, with earnings improvements likely becoming the core driver for the next phase.”
“The improvement in liquidity conditions and rising investor risk appetite are working in tandem, driving stock indices higher,” they added.
In Hong Kong, the Hang Seng Index (.HSI) was down 1.2% at 26,163.24. The Hang Seng Tech Index (.HSTECH) was down 1.9% to a one-week low.
Around the region, MSCI’s Asia ex-Japan stock index (.MIAPJ0000PUS) was weaker by 0.5%, while Japan’s Nikkei index (.N225) was up 0.4%.

MCHI

ASHR

513180

513130

520920

159740

03032

159742

Reuters

iShares MSCI China

Xtrk Hrvt Csi 300 Chn

ChinaAMC Hang Seng Technology ETF(QDII)

Huatai-PB CSOP Hang Seng Technology ETF(QDII)

Tianhong Hang Seng TECH ETF(QDII)

Dacheng Hang Seng Technology ETF(QDII)

HSTECH ETF

Hang Seng TECH ETF I

China stocks hit 3-month high as Iran ceasefire offers cautious optimism