FTSE China A50 futures rallied, turning positive.

On Aug 5 local time, Brazil's central bank MPC cut the benchmark policy rate to 14%, its fourth consecutive cut and the lowest level in nearly a year. Despite renewed Middle East conflict lifting oil prices and adding inflationary pressure in Brazil, markets expect the easing cycle to continue and price a further cut to 13.75% by end-2026.

Mainland A-share indices closed higher after a weak open: Shanghai Composite +1.47%, Shenzhen Composite +1.86%, ChiNext +1.32%; STAR 50 Index +4.78%. Turnover across Shanghai and Shenzhen was 2.66 trillion yuan, up 446 billion yuan from the prior session. More than 3,700 stocks advanced. Zhongji Xuchuang recorded turnover above 67.5 billion yuan, eclipsing its previous record of 59.77 billion yuan on July 30, 2026. Memory-chip names were strongest—Zhengfan Technology hit the 20% daily limit; photolithography stocks were active, with Woge Optoelectronics posting a second straight daily limit up; precious-metals plays strengthened, with Sichuan Gold among stocks at the daily limit. PCB, lithium-battery, semiconductor, education and pharmaceutical sectors outperformed; banks, oilfield services & engineering and liquor sectors underperformed.