AI Stocks Propel Chinese Markets Amid US Economic Speculations

Mainland China and Hong Kong stocks bounced back after a two-day decrease, driven largely by gains in artificial intelligence stocks. The Shanghai Composite index rose by 1.19%, while Hong Kong's Hang Seng Index increased by 0.92%. Investors remain watchful of delayed U.S. economic data for future Federal Reserve policy directions.

In a remarkable rebound, stocks in Mainland China and Hong Kong rallied following a two-day slump, largely thanks to a surge in artificial intelligence shares. The Shanghai Composite index closed with a 1.19% gain, after hitting a two-month low just the day before. Meanwhile, the CSI300 index saw an even more impressive rise of 1.83%.

MetaX Integrated Circuits made a significant debut in the market, its shares skyrocketing 700% as investors positioned themselves to benefit from China's strategic push to cut its reliance on U.S. AI chip giants like Nvidia and Advanced Micro Devices. The CSI artificial intelligence sub-index surged 3.62%, outpacing the general market recovery.

In the United States, job growth exceeded expectations in November after significant payroll cuts in October due to government spending reductions. The latest employment data suggests the labor market remains largely resilient, though it did little to alter current rate-cut expectations. Across the Pacific, China continues to honor its trade commitments with the U.S., though underlying tensions remain persistent.

(With inputs from agencies.)