European stocks opened lower on Tuesday, while Chinese technology shares saw a strong surge after Chinese President Xi Jinping met with entrepreneurs, signaling support for the tech sector.
In early European trading, France’s CAC 40 dropped 0.18%, and Germany’s DAX fell 0.26%. The UK’s FTSE 100 remained largely flat.
In Asia, Hong Kong’s Hang Seng index rose by 1.59% to 22,976.81, while the Shanghai Composite fell 0.93% to 3,324.49. Japan’s Nikkei 225 climbed 0.25% to 39,270.40 after the country reported better-than-expected economic growth for the fourth quarter. Australia’s S&P/ASX 200 declined by 0.66% to 8,481.00, while South Korea’s Kospi increased by 0.63% to 2,626.81.
Chinese tech stocks saw significant gains. E-commerce giant Alibaba rose nearly 3%, smartphone manufacturer Xiaomi’s stock jumped more than 6%, and other firms like Tencent and Meituan also saw positive movements in their stock prices.
Xi Jinping’s meeting with entrepreneurs on Monday, which included Alibaba founder Jack Ma, is seen as a move to provide reassurance and stability following the previous years’ crackdown on China’s technology sector.
Stephen Innes, managing partner at SPI Asset Management, noted that the rare meeting between Xi Jinping and tech executives, including Alibaba founder Jack Ma, is a significant move. He described it as more than just a routine policy discussion, pointing out that it reflects Beijing’s increasing concerns about the country’s economic momentum and its standing in the global tech competition.
Innes added that the key takeaway for investors is clear: China’s leadership is signaling renewed support for the tech sector. However, whether this support will lead to lasting policy changes or is merely a short-term strategy to boost confidence remains uncertain.
Attention is focused on whether the stock markets in China and Hong Kong will continue their upward trajectory, as Chinese stocks have outperformed markets in Japan, the U.S., and India this year. A report from BofA Securities highlighted factors driving China’s stock market, including an unexpectedly positive U.S.-China relationship, with only a 10% tariff imposed by the U.S., and the rise of DeepSeek as a competitor to top U.S. artificial intelligence models.
Markets worldwide are closely monitoring the potential impact of the tariffs recently announced by Trump, though analysts believe he may ultimately avoid sparking a severe global trade conflict. Trump’s latest tariff measures won’t take full effect for several weeks, leading to hopes that there may still be time for negotiations with other countries.
In energy markets, U.S. crude oil rose by 95 cents to $71.66 per barrel, while Brent crude, the global benchmark, gained 47 cents, reaching $75.69 per barrel.
In currency markets, the U.S. dollar strengthened to 151.86 yen from 151.51 yen, while the euro dropped slightly to $1.0460 from $1.0484.