Hong Kong stocks rise after AI sell-off fueled by China's DeepSeek drags Wall Street lower
Published On Jan 27, 2025, 6:37 PM
The article discusses the impact of a new Chinese AI startup, DeepSeek, which has led to a significant downturn in U.S. tech stocks, particularly affecting Japan's chip-related companies. Japanese companies like Advantest and Tokyo Electron experienced notable losses following concerns about competition in the AI sector. While Hong Kong stocks increased slightly, Japan's markets saw declines; the Nikkei 225 closed down 1.39%. The article highlights the broader implications of DeepSeek's advancements on global tech markets and individual companies' performances.
Stock Forecasts
SOXL
Neutral
While Japan's chip stocks suffer short-term losses, the ongoing innovation in AI may eventually lead to opportunities for recovery if companies adapt strategically. Investors might consider a cautious approach towards tech-focused ETFs that include Japanese and Asian stocks in anticipation of longer-term growths once the market stabilizes.
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