Chinese shares rose on Friday amid rising market optimism stemming from a potential peace agreement between the U.S. and Iran.
The Shanghai Composite Index, the main gauge of Chinese stocks, rose 1.1% to 4,031.51. The Shenzhen Component Index climbed 0.8% to 14,963.41.
U.S. President Donald Trump backed away from earlier military threats against Iran, claiming a peace deal is imminent. He said Supreme Leader Mojtaba Khamenei has approved a plan to be finalized within days, opening the door to nuclear talks.
However, Iran dismissed the claims. The country's foreign ministry spokesperson said no final decision has been made, calling reports of an agreement "merely speculation."
In regulatory news, the central banks of China and Indonesia agreed to explore expanding the size of their bilateral currency swap arrangement, as well as reaffirmed their commitment to increasing the use of local currencies in bilateral transactions.
On the economic front, the World Bank trimmed its 2026 growth forecast for China to 4.2% on lower domestic demand and consumer confidence. The June reading is 0.2 of a percentage point lower than the 4.4% growth forecast in January.
In company news, Guangdong Dcenti Auto-Parts (SHA:603335) plans to transfer a 108,079-square-meter industrial plot to the Taishan Land Development and Reserve Center for 107.7 million yuan. Shares of the auto parts maker surged 10% Friday.