Asian Stocks Rise on AI Boom, But US-China Trade Tensions Cap Gains
Asian stock markets saw an uptick on Thursday, driven by strong gains in the technology sector, which mirrored Wall Street's rally. However, escalating U.S.-China trade tensions limited the overall upside, keeping investor sentiment in check.
AI Optimism Fuels Tech Stocks Rally Across Asia
U.S. stock index futures edged higher during Asian trading hours, following a robust performance in tech stocks on Wall Street. The surge was largely driven by NVIDIA's positive forecast for capital spending on artificial intelligence (AI), reinforcing confidence in the sector.
Tracking their U.S. counterparts, heavyweight Asian tech stocks also posted gains, leading to a broad-based rally across the region.
Despite the Trump administration imposing a 10% tariff on Chinese imports, China’s AI sector has remained resilient. Companies like DeepSeek continue to attract investor interest, helping offset concerns over trade tensions.
This optimism lifted Chinese equities, with the Shanghai Composite Index climbing 0.8%, while the CSI 300 Index rose 0.7%. Hong Kong’s Hang Seng Index also advanced 0.4%, reflecting strong interest in AI-driven growth.
US-China Trade War Concerns Restrict Market Gains
Despite AI-led optimism, broader market gains were constrained by persistent U.S.-China trade tensions. Investors remained cautious ahead of China’s retaliatory tariffs on U.S. imports, set to take effect next week.
With uncertainty looming over global trade policies, investors have become increasingly wary of riskier assets, slowing the market’s momentum.
Elsewhere in Asia, Singapore’s Straits Times Index added 0.4%, buoyed by strong performances in the financial and technology sectors.
Key Takeaways:
- AI optimism fuels Asian tech stocks, following NVIDIA's upbeat AI investment outlook.
- China’s AI sector remains strong, despite fresh U.S. tariffs.
- Shanghai Composite, CSI 300, and Hang Seng indices rise, supported by tech gains.
- US-China trade tensions cap overall market upside, with investors remaining cautious.
(Sources: investing.com, reuters.com, ChatGPT)
