The hype surrounding DeepSeek’s AI model has helped to counter concerns of a trade war after Washington slapped a 10% tariff on Chinese imports. Traders said tech shares held up well amid relief that the US levy was smaller than expected and Beijing’s response has been targeted.
A gauge of Chinese tech shares trading in Hong Kong was poised to enter a technical bull market after DeepSeek’s artificial intelligence model ignited interest in China’s internet firms.
The Hang Seng Tech Index rose as much as 2.5%, taking its gains from a January low to over 20%. Xiaomi, Lenovo Group and Li Auto contributed the most to the advance on Friday. The gauge tends to be fairly volatile, having only hit a bear market last month.
