China Markets Eye Gains Ahead of Critical Q1 GDP Release

The Chinese equity markets are positioned for a potential higher open on Thursday, following four consecutive sessions of gains. The Shanghai Composite Index (SCI) currently trades just above the 4,025 mark, having climbed approximately 60 points, or 1.5%, over the last four trading days. Wednesday's session saw the SCI end marginally higher at 4,027.21, as strength in the financial sector was countered by declines in property and energy stocks. In contrast, the Shenzhen Composite Index retreated 0.71% to close at 2,685.30. Banking stocks showed notable resilience, with the Agricultural Bank of China surging 2.81% and China Merchants Bank rising 1.97%. However, energy giants faced pressure, with Sinopec and PetroChina both sliding over 1.4%, while property firm China Vanke dropped 1.24%. Global sentiment remains fragmented. While US indices like the NASDAQ and S&P 500 hit record highs—driven by a strategic partnership between Broadcom and Meta—the Dow Jones Industrial Average closed slightly lower. Additionally, WTI crude oil rose to $91.64 per barrel amid ongoing tensions and potential peace talks between the US and Iran. Market focus now shifts to a suite of critical economic data from China. Forecasts suggest Q1 GDP will grow 1.4% quarter-on-quarter and 4.8% year-on-year. Other expected figures include a slowdown in industrial production to 5.3% and a slight dip in the unemployment rate to 5.2%.