Asian Stocks Decline as the China AI Rally Declines – Asia Market Wrap
Asian shares lost ground as an AI-fuelled boom in Chinese technology companies faded, and investors remained cautious over tensions between the US and the EU over tariffs and the situation in Ukraine.
A barometer of Asian markets rose 0.3%, reaching its highest level since November, but Hong Kong stocks and a technology index sank. Treasury futures fell after cash trade was halted globally due to Presidents’ Day in the US. European equities index futures indicated a lackluster start.
The turbulent start to the week follows DeepSeek’s breakthrough in AI, which fuelled a more than $1 trillion rise in Chinese stocks. Investors are also keeping an eye on escalating tensions between the US and Europe following Trump’s tariff plans, which have triggered threats of retaliation. German and French bond futures fell amid concerns that European governments might have to increase military spending.
Trump’s tariff measures have spurred threats of retaliation, while JD Vance insulted long-time European friends during a security conference over the weekend. Plans to negotiate an end to the war in Ukraine have pushed the bloc to the background.
