Alibaba leads Asian stocks higher after earnings

 Alibaba leads Asian stocks higher after earnings

Equities in Hong Kong and a gauge of Asian shares advanced after Alibaba surged as much as 11% on the back of its earnings
 
February 21, 2025 / 08:13 IST

Asian stocks are in line to notch a sixth straight weekly gain, the longest winning streak in almost a year

Chinese technology shares led gains in Asian stocks after Alibaba Group Holding Ltd. reporting its fastest pace of revenue growth in more than a year boosted optimism toward the sector. The yen weakened past 150 per dollar.

Equities in Hong Kong and a gauge of Asian shares advanced after Alibaba surged as much as 11% on the back of its earnings. Japanese stocks were flat. Gold held near a record and Treasuries were little changed after US equities dropped from a record. Asian stocks are in line to notch a sixth straight weekly gain, the longest winning streak in almost a year.

While investors remain nervous about rising geopolitical tensions and a widening tariff war, Alibaba and other Chinese technology shares have surged in recent weeks on enthusiasm over DeepSeek’s artificial-intelligence model. Global funds piling into that surge have driven a $1.3 trillion rally in Chinese stocks.

“My conviction is until China makes major structural reforms, those growth spurts are gonna be short-lived,” said Ron Temple, chief market strategist at Lazard Asset Management. “You want to trade those rallies. It’s a ‘rent don’t own.’”

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