Asia stocks rise with Hong Kong up on AI, stimulus cheer; Japan buoyed by Buffett

Investing.com-- Most Asian stocks rose on Tuesday, with Hong Kong markets rallying on increasing optimism over more Chinese stimulus, while confidence in the country’s AI capabilities drove buying into major technology shares. 

Japanese shares were also standout performers, with the country’s five largest trading houses marking strong gains after billionaire investor Warren Buffett’s Berkshire Hathaway Inc (NYSE:BRKa) increased its holdings in the companies.

Broader regional markets tracked overnight strength in Wall Street, as a mix of bargain buying and some signs of economic resilience helped U.S. stocks rise further out of correction territory. 

But U.S. stock index futures fell in Asian trade, as investors remained skittish over more trade tariffs and a potential recession. Anticipation of a Federal Reserve meeting- which begins later on Tuesday- also sparked caution.

Risk appetite was dented by heightened geopolitical tensions in the Middle East, after Israel launched a wave of deadly strikes against Hamas amid the apparent collapse of a January ceasefire. 

Hong Kong soars on AI hype, China stimulus cheer 

Hong Kong’s Hang Seng index was the best performer in Asia, rallying nearly 2% to three-year highs on buying into heavyweight technology stocks.

Baidu (NASDAQ:BIDU) Inc (HK:9888) soared 10% after the company launched two new AI models, including one which it claimed rivaled DeepSeek- which has become a hot topic for the AI industry. 

Alibaba (NYSE:BABA) Group (HK:9988) rose more than 4% after the e-commerce giant, led by CEO Eddie Wu, told its major divisions that their 2025 performance will be gauged largely by their ability to leverage AI for future growth, according to a Financial Times report. The report highlighted a growing focus on AI within the e-commerce giant.

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Gains in Baidu and Alibaba spilled over into other technology stocks, given that their efforts highlighted growing interest and confidence in China’s AI capabilities. 

Among other tech majors, BYD Co (HK:1211) soared to a record high after the electric vehicle giant and Tesla (NASDAQ:TSLA) rival launched a new fast-charging technology which it claimed could recharge EVs in a matter of minutes. 

Outside tech, broader Hong Kong and Chinese markets advanced after Beijing revealed more details on its plans for stimulus, drumming up confidence in a 2025 economic recovery.

The mainland Shanghai Shenzhen CSI 300 and Shanghai Composite indexes added 0.3% and 0.2%, respectively. 

Australia’s ASX 200 rose 0.2%, also buoyed by optimism over major trading partner China. South Korea’s KOSPI added 0.3%, while Singapore’s Straits Times index surged 0.9%. 

Japan stocks buoyed by Berkshire increasing trading houses stakes

Japan’s Nikkei 225 index jumped 1.6%, while the TOPIX index added 1.5%. 

The two were boosted chiefly by standout gains in Japan’s five biggest trading houses- Itochu Corp. (TYO:8001), Mitsui & Co., Ltd. (TYO:8031), Mitsubishi Corp. (TYO:8058), Sumitomo Corp. (TYO:8053), and Marubeni Corp. (TYO:8002)- after Berkshire Hathaway increased its holdings in each company to nearly 10%. Buffett has repeatedly endorsed the five companies, and has flagged plans to increase his holdings.

Focus in Japan was squarely on a Bank of Japan meeting, with the central bank widely expected to keep rates unchanged on Wednesday. But it is also expected to strike a hawkish chord on recent signs of resilience in Japanese inflation and the economy. 

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Among other Asian markets, futures for India’s Nifty 50 index pointed to a positive open, with the index widely expected to track gains in its regional peers.

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