Tech shares in Hong Kong and mainland China rose on Tuesday, driven by significant gains in Tencent and Meituan, while investors assessed Middle East peace talks. The Hang Seng Index climbed 640 points, or 2.5%, to 26,038, marking its largest daily increase in nearly two months, with a turnover of HK$373.78 billion. The China Enterprises Index advanced 255 points, or 3%, to 8,762, and the Tech Index increased 234 points, or 4.7%, to 5,199. Tencent Holdings surged 10.5% following a Financial Times report that the company is nearing the launch of an AI agent for WeChat's 1.4 billion users. Meituan rose 9.3% despite posting a third consecutive quarterly loss, as it met revenue growth estimates and showed signs of easing competition in China's one-hour delivery market.
In mainland China, the Shanghai Composite Index rose 17 points, or 0.43%, to 4,075, with a turnover of 1.28 trillion yuan. The Shenzhen Component Index gained 250 points, or 1.63%, to 15,591, on a turnover of 1.51 trillion yuan, while the ChiNext Index surged 104 points, or 2.66%, to 4,055, with a turnover of 714 billion yuan.
In Tokyo, the Nikkei fell 200 points, or 0.3%, to 66,734, and the Topix edged down 16 points, or 0.42%, to 3,924.24. In Seoul, the Kospi reached a record closing high, rising 13 points, or 0.15%, to 8,801, led by technology firms on hopes of AI collaboration with Nvidia, ahead of the visit of its CEO Jensen Huang.
According to RTHK, Bob Savage, head of markets macro strategy at BNY, noted that markets are balancing geopolitical risks from US-Iranian military exchanges against enthusiasm for AI-driven growth and technology investment. Meanwhile, China remains the only major emerging market attracting inflows across equity, fixed income, and currency markets. Lebanon announced a partial ceasefire between Hezbollah and Israel, while Iranian state media reported Tehran halting indirect negotiations with the US, potentially ending the ceasefire. US President Donald Trump stated that talks with Iran were progressing "at a rapid pace."