Chinese technology stocks jumped the most in three years, boosting equities across Asia, after optimism toward the sector got a boost from earnings of Alibaba Group Holding Ltd.
The yen weakened back past 150 per dollar. The gauge of Hong Kong-listed tech shares advanced and a broader gauge of Asian shares gained as Alibaba surged almost 14% on the back of its earnings.
The regional index is set for a sixth weekly gain, the longest winning streak in almost a year. The yen slipped after Bank of Japan Governor Kazuo Ueda signaled a readiness to quell a surge in bond yields.
While investors remain wary about rising geopolitical tensions and a widening tariff war, Alibaba and other Chinese technology shares have climbed in recent weeks on enthusiasm over DeepSeek’s artificial-intelligence model.
Global funds piling into the rally have driven a $1.3 trillion gain in Chinese stocks. “My conviction is until China makes major structural reforms, those growth spurts are gonna be short-lived,” said Ron Temple, chief market strategist at Lazard Inc.
“You want to trade those rallies. It’s a ‘rent don’t own.”
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