Asian stocks mostly saw gains on Tuesday, bolstered by a strong rally in Chinese tech stocks following a meeting between Chinese President Xi Jinping and entrepreneurs, which is being interpreted as a show of support for the tech sector, reports AP.
In Hong Kong, the Hang Seng climbed by 1.64% to 22,986.88, while the Shanghai Composite rose by 0.15% to 3,360.95. Japan’s Nikkei 225 increased by 0.39% to 39,296.11, following Japan’s economic growth surpassing forecasts for the fourth quarter. However, Australia’s S&P/ASX 200 dipped by 0.53% to 8,491.70, and South Korea’s Kospi gained 0.43% to 2,621.73.
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Chinese tech stocks saw a significant boost on Tuesday. Alibaba, an e-commerce giant, and Xiaomi, a smartphone manufacturer, both saw their share prices increase by more than 4%. Similarly, Tencent, a video game company, and Meituan, an online services provider, also experienced gains.
President Xi Jinping’s meeting with key entrepreneurs, including Alibaba’s Jack Ma, is viewed as a gesture of reassurance and stability following the previous crackdown on the technology sector in China.
“The symbolism of Xi’s rare meeting with tech leaders is clear. This isn’t just another policy gathering; it’s a deliberate move reflecting Beijing’s growing concerns about economic momentum and its role in the global tech race,” said Stephen Innes, managing partner at SPI Asset Management.
“For investors, the message is unmistakable: China’s leadership is once again backing the tech industry. Whether this leads to long-term policy changes or is simply a short-term confidence boost remains uncertain,” he added.
All eyes are now on whether Chinese and Hong Kong stock markets will maintain their positive momentum, with Chinese stocks outperforming those of Japan, the U.S., and India this year.
A report from BofA Securities highlighted key factors driving China’s stock market, including an unexpectedly improved U.S.-China relationship, with Trump imposing only a 10% tariff increase so far, and the rise of DeepSeek as a competitor to leading U.S. artificial intelligence models.
Meanwhile, global markets are closely watching the potential impact of tariffs announced by Trump. However, analysts believe he may ultimately avoid triggering a global trade war.
Trump’s most recent tariff measure will not take effect for several weeks, allowing time for negotiations with Washington.
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In energy trading, U.S. crude oil gained 54 cents to $71.25 a barrel, while Brent crude rose by two cents to $75.24 per barrel.
In currency trading, the U.S. dollar strengthened against the Japanese yen, rising to 151.91 yen from 151.51 yen. The euro traded at $1.0465, down from $1.0484.