Investor confidence in Chinese technology stocks soared as President Xi Jinping engaged with business leaders, signalling strong support for the sector. The Hang Seng Index led gains in Asia, driven by significant upswings in Alibaba, Xiaomi, Tencent, and Meituan.
Despite mixed performances across major Asian indices, Hong Kong and Japan posted gains, with the Nikkei 225 benefitting from stronger-than-expected economic growth. Meanwhile, the Shanghai Composite and Australia’s ASX 200 saw declines. The KOSPI Index in South Korea also edged higher.
A key factor influencing the market remains US-China relations. Bank of America Securities highlighted that trade tensions, including Trump’s 10% tariff hike, continue to shape investment sentiment. However, China’s technological advancements, exemplified by AI competitor DeepSeek, are positioning the country as a formidable player in the global AI landscape.
With political backing and a competitive tech ecosystem, China’s influence in global markets is strengthening, making its tech sector a critical focus for investors.
Fidelity Asian Values Plc (LON:FAS) provides shareholders with a differentiated equity exposure to Asian Markets. Asia is the world’s fastest-growing economic region and the trust looks to capitalise on this by finding good businesses, run by good people and buying them at a good price.
