Asian markets mostly advanced on Tuesday, with Chinese technology stocks leading gains after President Xi Jinping met with business leaders, signaling renewed support for the sector.
Tech Stocks Drive Hong Kong, China Gains
Hong Kong’s Hang Seng Index surged 1.64% to 22,986.88, while China’s Shanghai Composite edged up 0.15% to 3,360.95. The rally was fueled by a strong performance in the tech sector, with Alibaba and Xiaomi jumping over 4%, while Tencent and Meituan also posted gains.
The rare meeting between Xi and key entrepreneurs, including Alibaba’s Jack Ma, was widely seen as an effort to restore confidence in China’s tech industry after years of regulatory crackdowns.
“The optics of Xi’s rare sit-down with tech executives are impossible to ignore,” said Stephen Innes, managing partner at SPI Asset Management. “This is a calculated move, reflecting Beijing’s growing concerns over economic momentum and China’s position in the global tech race.”
Regional Market Performance
Japan’s Nikkei 225 rose 0.39% to 39,296.11, buoyed by stronger-than-expected fourth-quarter GDP growth.
South Korea’s Kospi gained 0.43% to 2,621.73.
Australia’s S&P/ASX 200 dipped 0.53% to 8,491.70.
China’s stock market has outperformed those of Japan, the U.S., and India so far this year, driven by improved U.S.-China relations and the rise of DeepSeek, a Chinese artificial intelligence firm emerging as a rival to U.S. AI leaders.
Global Markets Monitor Trade War Developments
Investors remain cautious over U.S. trade policy after Donald Trump announced new tariffs, though analysts believe a full-scale global trade war may be avoided. His latest tariff plans will take weeks to implement, allowing time for negotiations.
Energy & Currency Markets
U.S. crude oil rose 54 cents to $71.25 per barrel, while Brent crude inched up 2 cents to $75.24.
U.S. dollar strengthened to 151.91 yen, while the euro weakened to $1.0465.
With China signaling renewed tech support and global trade concerns still unfolding, investors are watching whether the current rally in Chinese and Hong Kong markets has more room to run.
