Asian shares rose partly on optimism about artificial intelligence in China, defying broader market caution after a last-minute deal reversed Donald Trump’s decision to impose tariffs on Colombia.
Shares advanced in Japan, Hong Kong and mainland China, with Chinese tech firms linked to DeepSeek’s business model rallying after the AI startup gained traction.
In contrast, US futures slid amid concerns that the Chinese app may disrupt US technological leadership.
The dollar rose along with Treasuries, even after the White House said Trump will hold off on imposing threatened tariffs and sanctions on Colombia following a bilateral agreement on the return of deported migrants.
“DeepSeek shows that it is possible to develop powerful AI models that cost less,” said Vey-Sern Ling, managing director at Union Bancaire Privee.
“It can potentially derail the investment case for the entire AI supply chain, which is driven by high spending from a small handful of hyperscalers.”
