Asian stocks trimmed gains as an AI-fueled rally in Chinese technology shares faded and investors remained cautious due to tensions between the US and European Union over tariffs and the war in Ukraine.
A gauge of Asian shares rose 0.3%, after reaching the highest level since November, while equities in Hong Kong and an index of technology stocks retreated.
Treasury futures edged lower with cash trading closed globally due to Presidents’ Day in the US. European equity index futures pointed to a muted open.
The volatile start to the week comes after DeepSeek’s breakthrough in artificial intelligence had spurred a more than $1 trillion rally in Chinese shares.
Investors are also monitoring a ratcheting up in tensions between the US and Europe after President Donald Trump’s tariff plans sparked threats of retaliation.
German and French bond futures dropped amid concern European governments may have to boost military spending.
