Chinese tech shares trip DeepSeeokay wave to bull market | Invesloan.com

Gordon morning and welcome back to FirstFT Americas. Today’s packed agenda includes:

• Chinese tech stocks outperform US rivals

• How US industry is coping with tariff chaos

• Visual story on the US bitcoin reserve

• Toronto’s newest casual dining options

A benchmark for Chinese technology stocks has risen more than 20 per cent in the past month, taking it into bull market territory as investors pile into the country’s internet companies following DeepSeek’s artificial intelligence breakthrough.

The gains for Hong Kong’s Hang Seng Tech index outpace the Nasdaq 100 and the US’s “Magnificent Seven” this year and reflect growing foreign investor interest in China after the DeepSeek news that it had developed a much cheaper AI model than its western rivals.

Shares in internet group Alibaba rose more than 6 per cent today after Chinese media reported it was working with Apple on rolling out the iPhone maker’s AI features in China. The rise takes Alibaba’s gains in the past month to more than 35 per cent.

Consumer electronics group Xiaomi, search engine developer Baidu, electric-car maker BYD and ecommerce platforms JD.com and Meituan have also made big gains this year following the DeepSeek announcement. The broader Hang Seng index is up 15 per cent in the past month.

Analysts said investors were boosted by the belief that the Chinese development of large language models was advancing and consumer-facing companies would rapidly adopt them. Here’s more on the boom in Chinese tech stocks.

• AI summit: JD Vance warned Europe not to adopt an “overly precautionary” approach to artificial intelligence as the US and UK refused to sign a declaration agreed by 60 other countries in Paris.

• Schmidt on DeepSeek: The former Google chief has warned that western countries need to focus on building open-source AI models or risk losing out to China.

• 🎧 Is AI overvalued? In the latest episode of our Tech Tonic podcast, AI editor Madhumita Murgia asks whether the cutting-edge technology’s benefits justify the investment.

Scroll down for today’s featured chart on how “Trump trades” have backfired recently. And here’s what else we’re keeping tabs on today:

• Economic data: The US Labor Department’s Bureau of Labor Statistics updates the consumer price index for January. Brazil’s statistics agency IBGE publishes services activity data relative to December.

• Results: Kraft Heinz, Cisco Systems, Reddit, Biogen, CVS Health Corp and Interpublic Group are among those reporting. See our Week Ahead newsletter for the full list.

• Federal Reserve: Chair Jay Powell delivers semi-annual monetary policy testimony before the House Financial Services Committee, a day after vowing to “focus on the data” in front of a Senate committee. Christopher Waller, Fed Board governor, speaks at a “Stablecoins” event and Raphael Bostic, Atlanta Fed president, is due to make public comments on the economic outlook.

How will the world tackle the climate challenge in 2025? Join the Financial Times’ leading climate journalists for an exclusive look at the key events, topics and themes shaping the global sustainability agenda this year. Register for the free online webinar here.

Five more top stories

1. Donald Trump’s threat to impose 25 per cent tariffs on steel and aluminium is rippling across US industry, with companies ranging from manufacturers to oil and gas drillers facing increasing costs. Many executives are rushing to find ways to mitigate the political tumult and fallout from rising prices.

2. Foxconn will consider acquiring Renault’s stake in Nissan if it is a condition for working with either carmaker on electric vehicles, the Taiwanese contract electronics manufacturer said earlier today. Foxconn chair Young Liu confirmed earlier reports of the discussions which follow the collapse of merger talks between Nissan and Honda. Here’s more on the comments from Foxconn, which is best known for the part it plays in making the iPhone.

3. Israel’s Prime Minister Benjamin Netanyahu ordered his military to mass around the Gaza Strip and threatened to resume “intensive fighting” against Hamas if the Palestinian militant group failed to release Israeli hostages by midday on Saturday. Netanyahu’s comments came after a meeting of the country’s security cabinet and repeat a deadline announced by Donald Trump earlier this week.

4. The White House described the release of American teacher Marc Fogel from captivity in Russia as a show of “good faith” that would help talks to end the war in Ukraine. Fogel landed in Washington yesterday evening and was greeted by Donald Trump at the White House. “I feel like the luckiest man on Earth right now,” said Fogel, according to news agency reports. Read more on the negotiations.

5. Walt Disney has replaced “diversity and inclusion” as a standalone metric in setting executive pay with “talent strategy”, according to an internal memo seen by the Financial Times. Disney is also removing advisories that it plays ahead of some old films, such as Dumbo and Peter Pan, which warn viewers of “negative depictions and/or mistreatment of peoples or cultures”.

Visual story

Trump has vowed to make America the world’s “crypto capital”, words that have helped supercharge bitcoin’s price to six-figure highs. Enthusiasts are particularly excited by talk of a national bitcoin stockpile. But how such a reserve would work, and what it would mean for the cryptocurrency, is unclear. And would taxpayers be left holding the bag if — or when — prices fall?

We’re also reading . . . 

• Trump vs the courts: The US judiciary poses the ultimate test of whether the president will break the system, writes Edward Luce.

• Global development: Amid the Trump administration’s onslaught on USAID, Martin Wolf makes the moral argument for persisting with foreign aid.

• Vanguard: Today’s Big Read explores the new challenges facing the passive investing powerhouse as it pushes into wealth management and cash accounts.

• Victoria’s Secret: Can the lingerie brand that built a multibillion-dollar empire on extravagant shows and a provocative image win over Gen Z?

Chart of the day

“Trump trade” bets on a stronger dollar and higher bond yields have backfired. The weakening of the US currency and a rally in Treasuries have confounded widespread investor expectations that Trump’s economic agenda would keep inflation and interest rates high.

Take a break from the news . . . 

Toronto has recently seen a proliferation of little culinary kingdoms. Patrick Kriss, owner of the Michelin-starred Alo restaurant, has opened casual offshoot Aloette while Osteria Giulia, which also has a Michelin star, now has a little sibling Giulietta. Joshua Oliver reviews these new options for less pretentious dining.