HONG KONG (AP) — Most Asian shares saw gains on Tuesday, with a notable increase in Chinese tech stocks following a meeting between Chinese President Xi Jinping and entrepreneurs this week, signaling support for the tech sector.
The Hang Seng index in Hong Kong climbed 1.64% to reach 22,986.88, while the Shanghai Composite rose 0.15% to 3,360.95. Japan’s Nikkei 225 increased by 0.39% to 39,296.11, boosted by economic growth in the fourth quarter that exceeded expectations. In contrast, Australia’s S&P/ASX 200 dipped 0.53% to 8,491.70, while South Korea’s Kospi gained 0.43% to 2,621.73.
Chinese technology stocks experienced a significant rally on Tuesday. Alibaba, a major e-commerce platform, and Xiaomi, a smartphone manufacturer, each saw stock price increases of over 4%. Additionally, Tencent, a leading video gaming company, and Meituan, an online services provider, also reported gains.
The meeting between President Xi Jinping and entrepreneurs, including Alibaba founder Jack Ma, is interpreted as a message of reassurance and stability following recent crackdowns on the tech sector.
“The implications of Xi’s rare meeting with tech leaders are significant. This isn’t merely another policy discussion — it’s a strategic move, reflecting Beijing’s increasing worries about economic momentum and China’s standing in the global technology landscape,” noted Stephen Innes, managing partner at SPI Asset Management.
“For investors, the message is unmistakable: China’s leadership is reaffirming its commitment to tech once again. Whether this results in lasting policy changes or is simply a temporary boost in confidence remains to be seen,” he added.
Market participants are keenly observing whether the stock markets in China and Hong Kong will maintain a bullish trend, as Chinese stocks have outperformed those in Japan, the U.S., and India so far this year.
A report from BofA Securities highlights that key factors influencing the Chinese stock market include an unexpectedly positive U.S.-China relationship, with Trump imposing only 10% additional tariffs thus far, and the rise of DeepSeek as a competitor to leading U.S. AI models.
Globally, markets are anxiously monitoring potential upward pressures from recently announced tariffs by Trump. However, analysts believe he might ultimately avoid inciting a severe global trade conflict.
His latest tariff measures will not take full effect for several weeks at least, raising hopes for negotiations between nations and Washington in the interim.
In energy markets, benchmark U.S. crude increased by 54 cents to $71.25 a barrel, while Brent crude, the international benchmark, rose by two cents to $75.24 a barrel.
In currency trading, the U.S. dollar rose to 151.91 Japanese yen from 151.51 yen. The euro was traded at $1.0465, down from $1.0484.
