Tariff Tensions Shake Asian Markets Amid DeepSeek's AI Triumph

Asian markets, including China and Hong Kong, experienced a downturn as new tariff threats from President Trump caused volatility. Despite the decline, momentum remains due to the DeepSeek AI breakthrough. Analysts see potential for further gains in Chinese stocks, supported by improved governance and geopolitical conditions.

On Thursday, China and Hong Kong stock markets faced declines following new tariff threats from U.S. President Donald Trump. The tariffs target a range of industries, increasing Sino-U.S. tensions.

The CSI300 Index dropped 0.3% while the Hang Seng fell 1.6%, primarily due to a sharp correction in technology stocks, despite the lasting momentum from DeepSeek's AI innovations.

Investment banks, including Morgan Stanley, maintain optimism for China's market, highlighting governance improvements and geopolitical conditions. Despite growth in sectors like internet healthcare, cloud computing saw a decline amidst ongoing market fluctuations.