HONG KONG: Chinese and Hong Kong stocks were broadly higher on Monday as optimism around artificial intelligence startup DeepSeek continued to lift tech stocks, while better-than-expected inflation data buoyed sentiment. The Shanghai Composite Index gained 0.3% to 3,313.75 points by the midday break, adding to the 1.6% advance in the previous week.

Asian shares Friday were mixed, with Chinese technology stocks rising as most other Asian equities declined.

Concerns about US-China trade tensions may also ease in the short term as investors increasingly view tariff threats as negotiation tactics, analysts said

The Hang Seng Tech Index, which tracks the 30 largest technology companies listed in the city, rose as much as 2.9% on Friday, reflecting a rise of more than 20% from its January low.

China’s growing clout in the artificial intelligence space has sparked a wave of optimism toward the nation’s tech shares, with a gauge entering a bull market and brokers issuing upbeat calls.

The Hang Seng Tech Index gained 2.5% on Friday, with a total increase of more than 20% since January. It appears that DeepSeek’s hype has erased concerns of trade wars among Chinese investors, due to which China’s tech stocks in Hong Kong continue to surge.