With Chinese technology stocks rising after Chinese President Xi Jinping met with entrepreneurs this week in what is perceived as a display of support for the technology sector, Asian shares were mostly up Tuesday.
Asia Stocks Mostly Up as China’s Technology Stocks Rally:
With Chinese technology stocks rising after Chinese President Xi Jinping met with entrepreneurs this week in what is perceived as a display of support for the technology sector, Asian shares were mostly up Tuesday.
The Shanghai Composite gained 0.15% to 3,360.95, while Hong Kong’s Hang Seng increased 1.64% to 22,986.88. Japan’s economic growth during the fourth quarter exceeded expectations, and the Nikkei 225 was up 0.39% at 39,296.11. South Korea’s Kospi was up 0.43% in other regional markets at 2,621.73, while Australia’s S&P/ASX 200 was down 0.53% to 8,491.70.
Tuesday saw a surge in China’s technology stocks. The stock prices of e-commerce giant Alibaba and smartphone manufacturer Xiaomi increased by more than 4%. At the same time, Tencent, a video game business, and Meituan, a company that provides online services, also witnessed gains.
Following a crackdown on the technology sector in recent years, Chinese President Xi Jinping’s meeting with entrepreneurs on Monday, including Alibaba founder Jack Ma, is a sign of stability and certainty.
It is difficult to overlook the optics of Xi’s seldom meeting with tech executives. In a note, Stephen Innes, managing partner of SPI Asset Management, wrote, “This isn’t just another policy meeting—it’s a calculated move, reflecting Beijing’s growing concerns over economic momentum and China’s position in the global tech race.”
The message for investors is clear: China’s government again supports technology. It’s unclear if this is a short-term confidence boost or will result in long-term policy changes,” he added.
With Chinese equities outperforming the markets in Japan, the United States, and India thus far this year, investors are watching to see if the stock markets in China and Hong Kong will maintain their upward trajectory.
According to research by BofA Securities, the rise of DeepSeek as a competitor to the top U.S. artificial intelligence models and a better-than-expected U.S.-China relationship—Trump has only imposed 10% more tariffs so far—are the main factors driving the Chinese stock market.
Meanwhile, global markets anxiously await any upward pressure that Trump’s freshly announced tariffs may bring. However, many now believe Trump could avoid starting a harsh international trade war.
There is still time for nations to bargain with Washington since his latest tariff declaration will not go into force for at least a few weeks.
Benchmark U.S. crude increased 54 cents to $71.25 a barrel in energy trading. The global benchmark, Brent crude, increased by two cents to $75.24 a barrel.
The U.S. dollar appreciated from 151.51 to 151.91 Japanese yen in currency trading. The euro dropped from $1.0484 to $1.0465.
