Surge in AI Stocks Bolsters China-HK Markets Amid Cautious Lending Rates

Stock markets in China and Hong Kong witnessed gains driven by AI stocks as investors prepared for Nvidia's earnings report. The surge came despite cautious lending rates. The AI sector led the charge, helping major indices rally, although other Asian markets didn't show similar strength.

Stock markets in China and Hong Kong gained ground on Wednesday, buoyed by strong performances in AI stocks, notably ahead of Nvidia's anticipated earnings report. However, sentiment remained cautious among investors due to steady lending rates.

The Shanghai Composite index climbed 0.66% to close at 3,367.99, while the blue-chip CSI300 increased by 0.22%, led by increases in consumer staples and healthcare sectors. The CSI300 Artificial Intelligence Index saw a significant jump of 1.5%.

Across the region, Hong Kong's Hang Seng Index rose by 0.21% to 19,702.79, while the broader MSCI Asia ex-Japan index declined by 0.19%. Meanwhile, Chinese fund companies announced fee reductions for equity ETFs, following regulatory encouragement for index investment and fund reform.

(With inputs from agencies.)