Alibaba's AI Surge Energizes Shanghai Stocks to New Heights

Shanghai and Hong Kong stocks soared on Monday, buoyed by Alibaba's impressive AI-driven growth. China's regulatory confidence and expectations of a U.S. interest rate cut added to market optimism. The surge also highlighted the potential impact of China's advances in AI and semiconductor industries.

Shanghai stocks reached fresh 10-year highs, bolstered by Alibaba's strong performance in AI, while Hong Kong shares climbed on Monday. Investor confidence surged due to Alibaba's AI breakthroughs fueling Chinese innovation.

Market sentiment improved on the mainland, supported by regulators' commitment to reinforcing stock market trends. Shanghai's Composite Index rose 0.5%, and the CSI300 Index climbed 0.6%, marking impressive gains after a stellar August.

Hong Kong's Hang Seng Index soared 2.2%, with Alibaba's 19% surge leading the charge. The tech giant's AI-driven growth, especially in cloud computing, was pivotal. Meanwhile, the CSI AI Index and STAR Semiconductor Index both hit record highs, underscoring advancements in China's domestic chip industry.

(With inputs from agencies.)