China’s stock markets reopen after the Lunar New Year break, facing renewed trade tensions with the U.S. and major developments in artificial intelligence. Investors are closely monitoring Beijing’s response to bolster market confidence.
Despite the Trump administration imposing new tariffs on Chinese imports, the initial impact appears less severe than expected. Hong Kong stocks rallied earlier this week, fueled by optimism around China’s AI leader DeepSeek, which recently unveiled a cost-effective AI model, shaking up global tech valuations.
One of the first signals from Beijing will be the yuan’s central bank fix. A weaker yuan helped counter tariffs during Trump’s first term, and any devaluation could indicate China’s stance on trade negotiations. Since Jan. 27, the offshore yuan has dropped 0.6% against the dollar, hitting record lows.
Chinese stocks in Hong Kong climbed over 4% this week, with tech giants surging nearly 7%. Semiconductor firms saw massive gains, with SMIC jumping 8.5% and Hua Hong Semiconductor soaring 12.7%. Analysts believe DeepSeek’s innovation strengthens China’s AI sector, even amid U.S. tech restrictions.
The trade war’s impact is less likely to rattle markets compared to 2018, as investors have anticipated tensions. Expectations are rising for China to roll out economic support measures, particularly in response to weak domestic growth and property market concerns.
Trump and Chinese President Xi Jinping are expected to discuss trade soon, with investors hoping for signs of a potential deal. Meanwhile, bullish AI and EV sectors continue to drive market sentiment, keeping Chinese equities resilient despite ongoing trade uncertainties.


Trump Plans Call With Thailand and Cambodia to Ease Rising Border Tensions
US Criticizes China After Radar Incident Escalates Tensions With Japan
Gold Prices Hold Firm as Markets Await Fed Rate Cut; Silver Surges to Record High
Japan Weighs New Tax Breaks to Boost Corporate Investment Amid Spending Debate
U.S. Condemns Houthi Detention of Yemen Embassy Staff
Global Markets Steady as Yen Holds Firm After Japan Earthquake Amid Central Bank Focus
U.S. Considers Terrorism-Related Sanctions on UNRWA Amid Legal and Humanitarian Concerns
BOJ Expected to Deliver December Rate Hike as Economists See Borrowing Costs Rising Through 2025
Asian Markets Slip as Investors Brace for Fed Rate Cut and Global Policy Decisions
US Signals Openness to New Trade Deal as Brazil Shows Willingness, Says USTR Greer
Brazil Holds Selic Rate at 15% as Inflation Expectations Stay Elevated
Australia’s Business Conditions Ease in November as Capacity Constraints Persist
Trump Says Gaza Board of Peace Lineup to Be Revealed Early Next Year
Honduras Election Tension Grows as Asfura Holds Narrow Lead in Preliminary Count
U.S. State Department Reverts to Times New Roman in Push for “Professionalism”
U.S.-Indonesia Trade Deal Faces Uncertainty as Jakarta Reconsiders Key Commitments
Asian Currencies Steady as Fed Delivers Hawkish Rate Cut; Aussie and Rupee Under Pressure 



