Asian markets rallied Tuesday as China's technology sector rebounded sharply following President Xi Jinping's high-profile meeting with tech leaders. The unprecedented gathering, which included Alibaba founder Jack Ma, signaled potential policy shifts after years of regulatory uncertainty in the sector.
Hong Kong's Hang Seng Index jumped 1.64% to 22,986.88, driven by Chinese tech stocks including Alibaba and Xiaomi, which both surged over 4%. Japan's Nikkei 225 rose 0.39% to 39,296.11 after better-than-expected GDP data, while South Korea's Kospi gained 0.43%.
This isn't just another policy meeting – it's a calculated move reflecting Beijing's concerns about economic momentum and global tech leadership
Market analysts highlight three critical growth drivers:
- Reduced US-China trade tensions under current tariff plans
- Breakthroughs in Chinese AI development like DeepSeek
- Strategic government support for domestic tech innovation
While Australia's S&P/ASX 200 slipped 0.53%, regional attention focused on whether China's market rally can maintain momentum against US and Indian counterparts. Energy markets showed cautious optimism, with Brent crude holding at $75.24 amid tariff uncertainties.
SPI Asset Management's Stephen Innes noted: Investors see this as Beijing's full-throated endorsement of tech – the question is whether this translates to lasting policy changes. Currency markets reflected the cautious stance, with the dollar strengthening to 151.91 yen while the euro dipped to $1.0465.
As markets await Trump's final tariff decisions, many analysts predict diplomacy might prevail. The delayed implementation window allows negotiation opportunities, potentially avoiding full-scale trade disruptions. With Chinese stocks outpacing major global indices in 2024, all eyes remain on Beijing's next moves in the high-stakes tech arena.
