Global stock markets mostly declined following disruptions caused by the Chinese AI startup DeepSeek.
DeepSeek’s open-access AI reasoning model appears to require significantly less investment compared to other AI models. This has led investors to sell technology stocks in the US and Japan while turning their attention to Chinese tech firms.
In Hong Kong, the Hang Seng Index rose by 0.7% to reach 20,197.77. E-commerce leader Alibaba saw its shares increase by 2.9%, and search engine company Baidu surged by 4.9%.
Conversely, the Shanghai Composite Index dipped slightly by 0.1% to 3,250.60 after a manufacturer survey revealed that China’s export orders had fallen to a five-month low. The official manufacturing Purchasing Managers’ Index (PMI) dropped to 49.1 in January from 50.1 in December, moving into contraction territory—where a reading below 50 indicates a decline. Additionally, new orders and construction PMIs also decreased.
In Japan, the Nikkei 225 fell by 0.9% to 39,565.80, continuing its downturn after the Bank of Japan raised its benchmark interest rate to 0.25%, the highest level since 2008. Technology stocks related to computer chips experienced significant losses, with Tokyo Electron declining by 4.9% and test equipment manufacturer Advantest plummeting by 8.6%.
Thailand’s SET Index also dropped by 0.7% in Bangkok. Markets remained closed in Taiwan and South Korea.
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