AI Optimism Boosts Chinese and Hong Kong Stocks

Chinese and Hong Kong stock markets saw gains due to optimism in AI startup DeepSeek. The Shanghai Composite and Hang Seng indexes rose, buoyed by interest in AI technologies. The announcement of partnerships with telecom operators further boosted sentiment, amidst easing concerns over deflation and U.S.-China trade tensions.

Chinese and Hong Kong stock markets experienced a positive start on Monday, driven by strong optimism surrounding the AI startup DeepSeek. Investors showed renewed interest in technology shares, pushing the Shanghai Composite Index up by 0.6% to 3,322.17 points.

In Hong Kong, the Hang Seng Index climbed 1.8%, with the tech-focused Hang Seng Tech Index hitting a four-month high, soaring 2.7%. Top gainers included AI and chipmaker stocks such as Cambricon Technologies and CloudWalk Technology.

Additionally, China's telecom giants announced collaborations with DeepSeek, further propelling market confidence. This push, coupled with improved inflation data, overshadowed concerns about U.S.-China trade relations, offering a positive outlook for investors.