Asia, Daily Dose

As DeepSeek Fuels China’s AI Rally, Asian Stocks Rise – Asia Market Wrap

Asian shares surged in part due to optimism about AI in China, bucking global market caution following a last-minute accord that reversed Trump’s decision to slap tariffs on Colombia.

Shares rose in Japan, Hong Kong, and mainland China, with Chinese IT firms tied to DeepSeek’s business model rebounding as the AI start-up gained traction. In contrast, US futures fell as investors worried that the Chinese app might undermine the country’s technical superiority.

The Dollar climbed alongside Treasuries, despite the White House’s announcement that Trump will postpone imposing punitive tariffs and sanctions on Colombia following a bilateral agreement on the repatriation of deported migrants.

Elsewhere, China’s factory output unexpectedly fell ahead of the Lunar New Year break, and the services sector cooled, indicating that additional fiscal stimulus is required even after a recent stimulus drive. Taiwan, South Korea, and Australia’s markets are closed for the holiday on Monday.

Oil prices fluctuated as investors reacted to the Trump administration’s quick trade measures. Gold dropped but remained close to a record high.