The Shanghai Composite Index climbed 1.78% to close at 3,881 on Tuesday, snapping a three-day losing streak as investor sentiment improved.

Markets were supported by a sharp decline in global oil prices and signs of delayed military escalation in the Middle East. Reports of a temporary pause in US action against Iran helped ease concerns about potential disruptions to energy supply, which in turn reduced fears of rising inflation.

Lower bond yields also contributed to the positive mood, as they weakened expectations of aggressive interest rate hikes and made equities more attractive.

The gains came alongside a broader recovery across regional markets, although ongoing geopolitical tensions, particularly around the Strait of Hormuz, continued to limit stronger upside.

Among individual stocks, notable performers included Eoptolink Technology, Zhongji Innolight, Zijin Mining, Biwin Storage Technology, and Cambricon Technologies, which all posted gains during the session.

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