Chinese and Hong Kong stocks saw broad gains on Monday, with optimism surrounding AI startup DeepSeek continuing to drive the tech sector higher. Better-than-expected inflation data also helped boost investor sentiment, analysts told Khaleej Times.
The Shanghai Composite Index rose 0.3%, reaching 3,313.75 points by midday, adding to last week's 1.6% increase. The blue-chip CSI 300 Index showed little movement after fluctuating between gains and losses.
In Hong Kong, the Hang Seng Index jumped 1.4%, while the Hang Seng Tech Index surged 1.8%, reaching a four-month high. AI-related stocks led the charge, with chipmaker Cambricon Technologies rising 6.2%, and AI firm CloudWalk Technology hitting the 20% daily trading limit. China’s telecom giants — China Mobile, China Unicom, and China Telecom — saw gains ranging from 1.2% to 5.9%, after announcing they were collaborating with DeepSeek’s open-source AI model to promote its technology.
Analysts at China Securities noted that the onshore market could maintain its positive momentum until the Two Sessions in March, driven by confidence in the launch of DeepSeek's AI platform. They also suggested that concerns about US-China trade tensions might ease in the short term, as investors are increasingly viewing tariff threats as part of ongoing negotiations.
Additionally, data showing China's consumer inflation accelerated to its fastest pace in five months in January, fueled by holiday spending, helped ease concerns about potential deflation. In broader regional markets, MSCI's Asia ex-Japan stock index slipped by 0.38%, while Japan's Nikkei Index gained 0.05%.
Bd-pratidin English/ Jisan
