Global markets showed robust performance, with the Dow Jones Industrial Average surpassing 50,000 points for the first time last Friday. Hong Kong stocks staged a strong recovery today, opening sharply higher and closing up 1.76%. Asian markets also performed vigorously, with the Nikkei 225 index rising 3.89% and the Korea KOSPI index gaining 4.10%. Japan's ruling coalition secured a majority in the latest House of Representatives election, ensuring continued governance under Sanae Takaichi. Her commitment to economic stimulus measures drove Japanese stock markets higher, though concerns remain regarding her advocacy for increased military spending and constitutional revisions.
Gold stocks continued their rebound, with Wan Guo Gold Group (03939) surging over 8%. Zijin Mining Group (02899), highlighted as a top pick for January, announced its three-year production plan through 2028, aiming to rank among the top three globally in copper and gold production. The stock rose more than 5% following the announcement.
Diplomatic tensions persisted as China's Foreign Ministry reiterated calls for Japan to retract Takaichi's remarks concerning Taiwan. Meanwhile, Iran's foreign minister confirmed communication with China and Russia regarding negotiations with the U.S., though significant differences in expectations suggest limited progress.
U.S. markets continued their AI-driven rally, with Nvidia scheduled to release earnings on February 25. Goldman Sachs raised its performance expectations for Nvidia, maintaining a $250 price target implying 35% upside from recent levels. Major tech firms including Meta, Amazon, Google, and Microsoft projected collective capital expenditures reaching $660 billion this year, boosting data center and AI infrastructure stocks. SUNeVision (01686) gained over 10%, while optical module supplier Yangtze Optical Fibre and Cable (06869) surged more than 15%. PCB material suppliers Kingboard Laminates (01888) and Kingboard Holdings (00148) both advanced over 6%.
The Shenzhen Exchange adjusted Hong Kong Stock Connect constituents effective February 9, adding OmniVision and GigaDevice (03986). The inclusion drove Shanghai Fudan Microelectronics (01385) up over 10%. AI development continued to highlight power demand, with precision components supplier Eagle Precision (01286) rising nearly 9%. Dongfang Electric (01072) jumped over 14% after commissioning Ethiopia's largest wind power project. Nuclear energy plays also gained, with uranium miner CGN Mining (01164) up nearly 9% and nuclear fusion-related Tiangong International (00826) advancing over 9%.
AI application sectors rebounded from recent softness. ByteDance's Seedance2.0 video generation model launch spurred optimism for content creation efficiency, boosting IP holder China Literature (00772) nearly 10% and copyright services provider Vobile (03738) over 7%. The emergence of anonymous model "Pony Alpha" on Open Router fueled speculation about new releases from Zhipu (02513), which surged over 36%, and MINIMAX (00100), up over 11%.
Tesla's evaluation of solar capacity expansion plans spurred gains in space solar concept Drinda (02865), up over 10%, and upstream supplier GCL Technology (03800), rising over 6%. Consumer stocks performed well ahead of the Spring Festival, with CTG Duty-Free (01880) gaining over 8% and new leader East Buy (01797) up over 4%. Pop Mart (09992) rose nearly 6% after reporting strong annual sales. Casino stocks rallied collectively, with Melco International (00200), MGM China (02282), Sands China (01928), and Galaxy Entertainment (00027) all rising over 3%.
Innovent Bio (01801) announced milestone payments and royalty agreements with Eli Lilly, driving its shares up over 7%.