Asia Stocks Mostly Up As China's Technology Stocks Rally

Hong Kong: Shares in Asia were mostly up Tuesday, with Chinese technology stocks surging after Chinese President Xi Jinping met with entrepreneurs this week in what is seen as a show of support to the technology industry.

Hong Kong's Hang Seng rose 1.64 per cent to 22,986.88, while the Shanghai Composite added 0.15 per cent to 3,360.95. Japan's Nikkei 225 was up 0.39 per cent to 39,296.11 after Japan's economic growth for the fourth quarter beat forecasts. In other regional markets, Australia's S&P/ASX 200 slipped 0.53 per cent to 8,491.70. while South Korea's Kospi was up 0.43 per cent to 2,621.73.

China's technology stocks rallied Tuesday. E-commerce firm Alibaba and smartphone maker Xiaomi both saw their stock price surge over 4 per cent, while video games firm Tencent and online services company Meituan also gained. Chinese President Xi Jinping's meeting with entrepreneurs on Monday, including Alibaba founder Jack Ma, is a signal of assurance and stability after a crackdown on the technology industry in recent years. “The optics of Xi's rare sit-down with tech executives are impossible to ignore. This isn't just another policy meeting — it's a calculated move, reflecting Beijing's growing concerns over economic momentum and China's position in the global tech race,” said Stephen Innes, managing partner of SPI Asset Management in a note. “For investors, the takeaway is clear: China's leadership is throwing its weight behind tech once again. Whether this translates into long-term policy shifts or is just a short-term confidence play remains to be seen,” he said.

Eyes are on whether China and Hong Kong's stock markets will continue on a bull run, with Chinese stocks outperforming Japan, US and India markets so far this year.