Hong Kong Stocks Surge Amid AI Boom, China Takes a Breather

Hong Kong stocks reached a two-month high, driven by upbeat sentiment in Asian markets, while Chinese stocks paused after hitting record highs. The Hong Kong market was bolstered by healthcare and energy shares. Meanwhile, Japan's AI optimism also contributed to broader regional gains despite China's tempered export outlook.

Hong Kong stocks surged to a two-month high on Tuesday, driven by a buoyant mood across Asian markets, while Chinese stocks took a breather after hitting a ten-year peak in the previous session.

The Hang Seng Index closed up 0.9%, marking its highest point since November 13, 2025. In contrast, the CSI300 and Shanghai Composite indexes saw a 0.6% drop, even as onshore stock turnover reached new heights.

Japanese shares led regional gains amid investor enthusiasm over AI advancements, lifting the MSCI's Asia-Pacific index outside Japan to a record high. Healthcare and energy sectors bolstered Hong Kong, and in China, healthcare and gold stocks saw gains despite overall mixed sector performances.

(With inputs from agencies.)