China, Hong Kong stocks rise as AI shares rally, oil prices slide

China and Hong Kong stocks edged higher on Tuesday, tracking a rally in global technology shares as strength in artificial intelligence-related stocks and falling oil prices lifted investor sentiment across Asian markets.

China's blue-chip CSI300 Index and the Shanghai Composite Index were both up 0.1% by the lunch break, while Hong Kong's benchmark Hang Seng Index gained 0.2%.

Technology stocks led gains across the region, following an overnight rally on Wall Street that saw the Nasdaq Composite jump 2.7%. China's 5G Communication Index climbed 2.7%, emerging as the best-performing sector onshore, while the technology-focused STAR50 Index advanced 1%.


Read more: Global Market Today: Asian stocks rally after US tech surge, oil slump

In Hong Kong, shares of optical communications equipment maker Zhongji Innolight surged 10%, while major technology companies listed in the city gained 0.5%, reflecting renewed investor interest in stocks linked to the artificial intelligence supply chain.

Among individual stocks, Wuxi AppTec rose as much as 5% before trimming gains after the US Pentagon removed the Chinese biotechnology company from its list of Chinese military companies. The move provided support to the company's shares amid broader gains in technology-related stocks.

Non-ferrous metal shares advanced 0.5%, supported by a rebound in gold prices this month as declining oil prices eased inflation concerns. However, energy stocks came under pressure, with the CSI Energy Index falling 2.2%. PetroChina shares dropped 5.2%.

Read more: US stocks: Dow rockets 1,100 points, S&P over 2% as oil slide cools inflation worries; Nvidia slumps

The gains in Chinese equities came against the backdrop of strong export performance, with the country's trade surplus exceeding $1 trillion in the first 10 months of the year. A global push to develop artificial intelligence infrastructure has boosted overseas demand for Chinese high-tech products, helping offset weakness in domestic consumption, Reuters reported.

The widening trade surplus, however, is likely to intensify trade tensions with major trading partners, amid concerns over China's growing export dominance and global trade imbalances.

Meanwhile, Chinese semiconductor companies Suzhou Denglin Technology and Jiangsu Xinde Semiconductor Technology made mixed debuts on the Hong Kong stock market on Tuesday after raising a combined HK$2.36 billion ($301 million) through their initial public offerings.

The mixed performance of the two semiconductor listings came as investors continued to assess opportunities in China's technology sector, particularly companies positioned to benefit from growing demand for AI-related infrastructure and components.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times.)