Asian stocks gain as Hong Kong leads on optimism from China’s Xi meeting
Asian stocks advanced, with gauges in Hong Kong outperforming after a meeting between China’s President Xi Jinping and business leaders raised expectations of more support for the private sector.
A regional benchmark of shares rose to its highest level since early November while Australian stocks extended losses after the central bank cut its policy rate, News.Az reports, citing Bloomberg.
The dollar strengthened against all of its Group-of-10 peers and US Treasury 10-year yields were up three basis points to 4.5% as the bond market reopened Tuesday after the Presidents’ Day holiday. Earlier, Federal Reserve Governor Christopher Waller said recent economic data supported keeping interest rates on hold until more progress was seen in inflation.
The optimism around China got a further lift Monday after the encounter between Xi and corporate leaders, including Alibaba Group Holding Ltd. co-founder Jack Ma. Several analysts saw the conclave as a possible end to the years-long crackdown on the private sector. Separately, DeepSeek’s breakthrough in artificial intelligence has driven a rally of more than $1 trillion in Chinese shares.
Xi’s meeting drew many of the biggest names in Chinese business over the past decade, representing industries from chipmaking and electric vehicles to AI. The summit demonstrated Beijing’s softer stance toward the companies that fuel most of economy, just as Washington ramps up a potentially debilitating campaign of global tariffs.
A gauge of major Hong Kong-listed technology stocks is trading near a three-year high after its DeepSeek-driven rally. Technology stocks including Alibaba and Xiaomi Corp. contributed the most to the gains to the Hang Seng China Enterprises Index.
China’s government bond yields advanced with the 10-year rising 4 basis points to 1.73%, the highest since December, as tight cash conditions in the local market and a rally in stocks sapped the demand for debt.
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