HONG KONG: Chinese and Hong Kong stocks rose on Monday as optimism around artificial intelligence startup DeepSeek continued to lift tech stocks, while better-than-expected inflation data buoyed sentiment.
The Shanghai Composite Index closed up 0.6% to 3,322.17 points, while the blue-chip CSI 300 Index inched up 0.2% after fluctuating between gains and losses.
In Hong Kong, the Hang Seng Index rose 1.8% and the Hang Seng Tech Index rallied 2.7% to a four-month high.
AI-related shares led gains on continued optimism around DeepSeek. Chipmaker Cambricon Technologies jumped 8.9% and AI firm CloudWalk Technology surged 20%, hitting the daily upper trading limit.
China’s three largest telecom operators - China Mobile , China Unicom and China Telecom - gained 1.7% to 6.6% after saying they were working with DeepSeek’s open source model to “promote inclusive application of the latest AI technology”.
“Onshore market could keep this upward momentum until the Two Sessions in March despite the volatility, boosted by the launch of DeepSeek AI which has increased market confidence,” analysts at China Securities said in a note.
Concerns about US-China trade tensions may also ease in the short term as investors increasingly view tariff threats as negotiation tactics, they said.
Meanwhile, worries about China’s deflation eased after data on Sunday showed consumer inflation accelerated to its fastest in five months in January thanks to the holiday spending.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.2% while Japan’s Nikkei index was nearly flat.
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