China, Hong Kong markets rally on tech boost, US-China thaw
Chinese and Hong Kong markets rallied on Wednesday, with tech stocks leading the charge and signs of smoother US-China relations adding to the optimism.
The Shanghai Composite Index was up 0.83%, while Hong Kong's Hang Seng gained 1.37%, helped by a strong performance from its tech sector.
Tech stocks lead the charge
Big tech names drove most of the excitement—Shanghai's STAR50 jumped 3.49% and semiconductor shares rose 4.68%.
Alibaba saw its stock pop more than 9% after revealing plans for new data centers in Brazil, France, and the Netherlands to boost its global AI reach.
Analysts see potential for improved US-China ties
China announced it will forego asking for the benefits it gains from its developing country status at the World Trade Organization—a move that analysts say removes a major sticking point with the US.
UBS strategist Lei Meng noted this is drawing money out of safe deposits into stocks as Shanghai nears a decade high, while Maybank analysts see it as a positive sign for future US-China relations.