On Monday, Asian markets moved within a flat-to-low range, reflecting ongoing concerns about increased U.S. trade tariffs and high interest rates. The pause in the AI-driven rally in Chinese stocks added to the cautious sentiment.
Key Market Highlights

Japan: Despite stronger-than-expected GDP data, Japanese stocks showed little movement, suggesting that the economic data failed to outweigh broader market concerns.
Australia: Australian stocks fell from record highs as the Reserve Bank of Australia began its two-day meeting, with expectations of an imminent rate cut.
Regional Sentiment: Markets in Asia took mixed cues from Wall Street, where softer-than-expected retail sales data sparked concerns over a slowing U.S. economy.

Chinese Market Developments

Pause in AI Rally: The surge in Chinese tech stocks—especially in Hong Kong—driven by excitement over AI advancements, cooled off. The Shanghai Shenzhen CSI 300 and Shanghai Composite both fell 0.1%, while the Hang Seng index also experienced a decline.
DeepSeek Impact: Despite the pause, some Chinese tech stocks still saw gains, particularly Tencent Holdings Ltd (HK:0700), which surged over 6% after its Weixin app began testing integration with DeepSeek R1, China’s newly launched AI model.

Concerns Looming Over Trade War

The optimism around AI was tempered by growing fears of a U.S.-China trade war, which continues to weigh on investor sentiment. Despite the AI sector showing promise, analysts remain cautious about the broader economic impact of trade tensions.

Market Outlook

Investors are watching closely for developments, with trade tensions and potential shifts in central bank policies likely to remain key drivers of market movements in the coming weeks.

Related Market Data

Sector P/E Ratio API – Get real-time updates on sector performance, including Chinese tech stocks.
ETF Holdings API – Monitor AI-driven ETFs and related sector performances as they evolve.

Conclusion
Asian stocks are facing headwinds from external economic pressures, with trade war fears and interest rate concerns damping sentiment. While the AI sector in China remains a key driver of growth, broader market stability hinges on geopolitical developments and central bank actions.