Catenaa, Friday, February 21, 2025 – Asian stocks climbed to a three-month high on Friday as investors rallied around Chinese tech stocks with enthusiasm for Artificial Intelligence(AI).
MSCI’s broadest index of Asia-Pacific jumped more than 1% to its highest since November 8 on Friday, putting the index on track for a sixth straight week of gains, the longest such winning streak in over two years.
This surge came as a result of investors getting around Hong Kong and Chinese-listed tech stocks which has taken Hong Kong’s tech shares up by 4.7%.
Chinese technology stocks jumped the most in three years, boosting technology shares across Asia as Alibaba surged almost 14%. Europe’s Stoxx 600 Index added 0.3% and US equity futures traded steady.
Chinese technology shares have been on a tear in recent weeks as local AI startup DeepSeek’s breakthrough prompted investors to re-evaluate the nation’s leading internet companies.
The Hang Seng Tech Index entered a bull market earlier this month on enthusiasm over DeepSeek’s AI model.
More recently, President Xi Jinping’s meeting with Alibaba founder Jack Ma and other tech executives spurred interpretations that Beijing is taking a more conciliatory tone in fostering the sector’s development.
So far in February, Asian stocks have surged by 2.5%, outstripping global counterparts as investors take advantage of opportunities within China, driven by the allure of DeepSeek AI’s technological advancements.
The sluggish performance of U.S. markets can be attributed to Walmart Inc.’s 6.5% downturn following a lacklustre forecast, which adds to concerns about the economic landscape.
China’s onshore and offshore equity markets have added more than $ 1.3 trillion in total value in just the past month mainly due to the bull run created by DeepSeek AI.
