By Mahmut Cil and Emir Yildirim
ISTANBUL (AA) – Hong Kong’s Hang Seng Index surged 13.43% in February, marking the strongest gain among Asian index futures last month.
The rise was driven by renewed interest in Chinese tech firms following DeepSeek’s success, despite US President Donald Trump’s tariff threats and escalating geopolitical risks.
Trump’s tariffs, introduced under his “America First” policy, have heightened uncertainties in the global economy, while the ongoing conflict in Ukraine adds to these concerns.
As Hang Seng outperformed other Asian indices, China’s Shanghai Composite Index gained 2.16%, and South Korea’s Kospi Index edged up 0.61%, whereas Japan’s Nikkei 225 declined 6.11%, making it the only Asian future to post a loss in February.
The release and success of the free and open-source DeepSeek artificial intelligence (AI) model, along with Alibaba’s better-than-expected profits, boosted risk appetite in Chinese markets.
Reports on Trump’s tariffs remain a key focus in the region, with statements from Beijing playing a crucial role in shaping market trends.
The People's Bank of China (PBoC) stated that it plans to adjust monetary policy as needed in response to rising external challenges. In its fourth-quarter report, the bank acknowledged that the negative effects of shifts in the global environment have intensified.
Chinese Commerce Minister Wang Wentao said last month that the US’ 10% tariffs — recently raised to 20% — on Chinese imports have negatively affected bilateral relations. He urged resolving economic and trade disputes through dialogue.
Analysts note that the Chinese government’s willingness to engage in dialogue has helped sustain risk appetite throughout the month while easing concerns over trade wars.
Meanwhile, Trump’s tariffs heightened risk sentiment in Japanese equity markets. Bank of Japan (BoJ) Governor Kazuo Ueda said the impact of Trump’s policies should be carefully evaluated before factoring them into economic forecasts, emphasizing the need for a broader perspective.
At the same time, South Korea’s central bank cut its policy rate by 25 basis points to 2.75% in February, in line with expectations. While the country’s political turmoil has eased, limiting uncertainty, the Kospi Index’s gains remained modest.