Shares across Asia experienced a positive trend on Tuesday, largely driven by the surge of Chinese technology stocks. This uptick follows a meeting where Chinese President Xi Jinping engaged with several entrepreneurs, signaling a renewed emphasis on supporting the technology sector.
In Hong Kong, the Hang Seng index climbed 1.64%, closing at 22,986.88. Meanwhile, the Shanghai Composite index saw a modest increase of 0.15%, reaching 3,360.95. Japan’s Nikkei 225 recorded a gain of 0.39%, finishing at 39,296.11, bolstered by economic growth that exceeded expectations for the fourth quarter. Conversely, Australia’s S&P/ASX 200 dipped 0.53%, settling at 8,491.70, while South Korea’s Kospi rose by 0.43% to 2,621.73.
Tech stocks in China experienced significant rallies, with major e-commerce player Alibaba and smartphone manufacturer Xiaomi both witnessing stock price increases exceeding 4%. Similarly, other companies in the sector, including Tencent, known for its video gaming business, and Meituan, a services platform, also reported gains.
The meeting between Xi Jinping and various entrepreneurs, which included Alibaba’s founder Jack Ma, is viewed as a positive indicator of stability and reassurance in what has been a tumultuous period for the technology sector in China.
“The significance of Xi’s rare interaction with tech leaders is noticeable. This isn’t merely another policy discussion — it’s a strategic maneuver indicative of Beijing’s rising concerns regarding economic growth and China’s competitive stance in the global tech arena,” noted Stephen Innes, managing partner at SPI Asset Management.
“In terms of investment implications, it’s evident that China’s leadership is reaffirming its support for the tech industry. The question remains whether this will lead to sustained policy changes or if it is merely a temporary boost in confidence,” he added.
Market observers are particularly interested in determining the longevity of the bullish trend in both China and Hong Kong’s stock markets, which have outperformed their counterparts in Japan, the U.S., and India thus far this year.
A report from BofA Securities has identified primary influences on the Chinese stock market, including a more favorable dynamic in U.S.-China relations, where additional tariffs imposed by Trump have so far been limited to 10%. Additionally, the emergence of DeepSeek as a competitor to leading U.S. artificial intelligence technologies was noted as a contributing factor.
Meanwhile, global markets are cautiously monitoring the possible repercussions of the recently announced tariffs by Trump. However, many analysts believe that he may ultimately refrain from instigating a severe global trade conflict.
His latest tariff measures will not come into effect for several weeks, which has sparked optimism about the potential for negotiations between nations and Washington.
In the energy market, benchmark U.S. crude oil rose by 54 cents, reaching $71.25 per barrel, while Brent crude, the international standard, increased slightly by two cents to $75.24 per barrel.
In currency exchange, the U.S. dollar strengthened against the Japanese yen, moving to 151.91 from the previous 151.51. The euro was priced at $1.0465, marking a decrease from $1.0484.
