HONG KONG (AP) — Shares in Asia were mostly up Tuesday, with Chinese technology stocks surging after Chinese President Xi Jinping met with entrepreneurs this week in what is seen as a show of support to the technology industry.
Hong Kong's Hang Seng rose 1.59% to 22,976.81, while the Shanghai Composite was down 0.93% to 3,324.49. Japan's Nikkei 225 was up 0.25% to 39,270.40 after Japan's economic growth for the fourth quarter beat forecasts. In other regional markets, Australia's S&P/ASX 200 slipped 0.66% to 8,481.00. while South Korea's Kospi was up 0.63% to 2,626.81.
China's technology stocks rallied Tuesday. E-commerce firm Alibaba gained nearly 3% and smartphone maker Xiaomi saw its stock price surge over 6%, while video games firm Tencent and online services company Meituan also gained.
Xi's meeting with entrepreneurs on Monday, including Alibaba founder Jack Ma, is a signal of assurance and stability after a crackdown on the technology industry in recent years.
“The optics of Xi’s rare sit-down with tech executives are impossible to ignore. 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,” said Stephen Innes, managing partner of SPI Asset Management in a note.
“For investors, the takeaway is clear: China’s leadership is throwing its weight behind tech once again. Whether this translates into long-term policy shifts or is just a short-term confidence play remains to be seen,” he said.
Eyes are on whether China and Hong Kong’s stock markets will continue on a bull run, with Chinese stocks outperforming Japan, U.S. and India markets so far this year.
According to a report by BofA Securities, key drivers for the Chinese stock market include a better than expected U.S.-China relationship, with Trump only imposing 10% additional tariffs so far, as well as the emergence of DeepSeek as a rival to leading U.S. artificial intelligence models.
Meanwhile, markets around the world are nervously watching what upward pressure may come from tariffs that Trump has announced recently. But analysts now think Trump may ultimately avoid triggering a punishing global trade war.
His most recent tariff announcement will not take full effect for at least several weeks, raising hopes that there is still time for countries to negotiate with Washington.
In energy trading, benchmark U.S. crude added 65 cents to $71.36 a barrel. Brent crude, the international standard, rose eight cents to $75.30 a barrel.
In currency trading, the U.S. dollar strengthened to 152 Japanese yen from 151.51 yen. The euro cost $1.0464, down from $1.0484.
