Asian Stocks Climb Amid Positive Economic Signals and AI Investments

China and Hong Kong stock markets witnessed an upward trend supported by Wall Street's positive performance and Alibaba's commitment to expand investments in artificial intelligence. China's CSI300 Index rose by 0.6%, reflecting optimism towards the potential December interest rate cut by the U.S. Federal Reserve.

China and Hong Kong's stock markets closed mostly higher on Wednesday, bolstered by the overnight rally in Wall Street and Alibaba's pledge to significantly invest in artificial intelligence. The CSI300 Index advanced by 0.6%, while the Shanghai Composite dipped slightly by 0.2%. In Hong Kong, the Hang Seng Index ticked up 0.1%.

U.S. stocks continued their upward trend on Tuesday, fueled by economic data that seemingly supported a potential interest rate cut by the Federal Reserve in December. Additionally, Alibaba's impressive quarterly revenue forecast and commitment to AI infrastructure further lifted market sentiment.

Analysts from UBS Asset Management cited China's equities as well-valued, with improved fundamentals potentially driving future growth. Key indices, including the CSI Artificial Intelligence, Cloud Computing, and STAR Chip Indices, experienced significant gains. Morgan Stanley emphasized structural improvements in China's equity market, highlighting corporate governance and a favorable business climate.

(With inputs from agencies.)