Analyst recaps Chinese stock market performance on Friday

Chinese stocks closed higher on Friday, with the benchmark Shanghai Composite Index up 0.01 percent to 3,510.18 points.

The Shenzhen Component Index closed 0.61 percent higher at 10,696.10 points.

The combined turnover of these two indices stood at 1.71 trillion yuan (about 239 billion U.S. dollars), up from 1.49 trillion yuan on the previous trading day.

Securities firms and stocks related to the internet finance and non-ferrous metal sectors led the gains, while stocks in the banking and gaming sectors led the losses.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 0.80 percent to close at 2,207.10 points.

Timothy Pope, a market analyst, recapped Chinese stock market performance on Friday as follows:

Investors were feeling pretty optimistic this morning as they awaited a reported meeting between Chinese Foreign Minister Wang Yi and the U.S. Secretary of State Marco Rubio, which is supposed to be happening on the sidelines of the Association of Southeast Asian Nations (ASEAN) Summit in Malaysia today. That meeting does come at a critical time for the markets, with the White House setting a new deadline of 1 August for tariffs to come into effect. The Shanghai Composite Index jumped to a nine month high in intraday trading off the back of that. At the lunchtime, it was up more than one percent, but ended the day flat after some profit-taking in the afternoon.

Trade-deal sensitive stocks like rare earths were definitely the big winners. A sub-index tracking critical minerals producers was up more than five percent by the end of the session. We have China Northern Rare Earths up 10 percent, as was rare earth miner Shenghe Resources. But what happened the end of the day was just profit-taking.

This week has also seen a resurgence in optimism over a fresh round of supply side reforms. The government cranked up the volume of it rhetoric against what it calls 'Neijuan' - involution or excess competition and overcapacity. There are a number of sectors where this is a potential problem - steel in particular has been called out recently -- but the prospect of more actions against that right from a central-government level all the way down to the local level, has raised hopes for a more reasonable and profitable market, and boosted stocks. That positive direction boosted brokerage stocks today, and that sector was up more than two percent.

Analyst recaps Chinese stock market performance on Friday

Thailand will release detained Cambodian soldiers once peace is restored, a Thai official said on Saturday, after the two countries agreed to a ceasefire following days of heavy clashes.

The ceasefire was agreed following intense discussions at General Border Committee (GBC) meetings between Cambodia and Thailand in Thailand’s Chanthaburi province.

Under the agreement, the truce took effect at noon local time and will be monitored by both sides for 72 hours. The Thai government said it reached the agreement after considering the impact of the crisis on the country's economy and international standing.

"Once peace has been restored, civilians can return to their homes safely. Thailand will then release 18 detained Cambodian soldiers," said Thai Defense Minister Gen. Nattaphon Narkphanit at a press conference after the meeting.

Thailand, in turn, expressed hope that Cambodian authorities will allow Thai citizens remaining in Cambodia to return safely.

The coming hours will be a key test of mutual trust. The two countries have agreed to keep communication channels open and work together to combat disinformation, which has complicated negotiations. Thailand also expects Cambodia to assist in clearing landmines in disputed areas.

Thailand said it is watching closely to see whether the ceasefire will be fully implemented, while remaining prepared to defend itself if hostilities resume.

"The ceasefire must be sincerely conducted and maintained. We are going to wait. That is why we have the 72-hour monitoring period in place. If things are not settled within the 72 hours, we will fall back to our protocol of using our right to defend our country," said Thai Air Chief Marshal Prapas Sonjaidee.

Prior to the ceasefire, the situation along the border was tense. During the General Border Committee talks, airstrikes and clashes occurred almost daily, with frontline control shifting frequently, taking a heavy toll on civilians.

Thailand to release detained Cambodian soldiers once peace is restored: official