Asian and European Markets Surge on Tech Optimism; Hong Kong's Hang Seng Jumps 3.3% Amid China Tech Rally on February 26, 2025

On February 26, 2025, Asian and European stock markets experienced a rally driven by renewed optimism in the technology sector. Hong Kong's Hang Seng Index led the gains, closing up 3.3% as investors bought into tech stocks following earlier concerns about potential US tariffs. In Europe, Paris and Frankfurt saw gains exceeding 1%. The rally in Hong Kong was fueled by Chinese startup DeepSeek's unveiling of a chatbot, boosting tech stocks. Alibaba surged 4.8%, JD.com rose over 8%, Meituan nearly 10%, and Tencent increased by 3.4%. Tokyo's Nikkei 225 was a notable exception, declining 0.3% due to the strengthening yen amid expectations of interest rate hikes by the Bank of Japan. The yen also benefited from increased bets on US interest rate cuts, influenced by a significant drop in US consumer confidence reported by the Conference Board. Oil prices remained steady, with West Texas Intermediate up 0.2% at $69.03 per barrel. The dollar strengthened against its main rivals. The market awaits Nvidia's quarterly earnings report, which could significantly impact market sentiment given its importance to the AI sector.