Chinese stocks hit their highest level in nearly 11 years on Monday, boosted by a strong rally in technology stocks driven by renewed optimism about artificial intelligence and strong exports.
The benchmark Shanghai Composite Index rose 0.9 percent to 4,219.13 points, after earlier in the session touching its highest level since July 1, 2015.
The CSI 300 index of leading stocks also rose by 1.4 percent, reaching its highest level in more than four years.
In Hong Kong, the Hang Seng Index (HSI) fell 0.3 percent to 26,318.37 points.
Technology stocks drove markets higher, supported by a broader regional rally amid growing optimism about artificial intelligence.
The CSI Semiconductor Index jumped 7.3 percent to a record high. The CSI Artificial Intelligence Index rose 3 percent, and the IT sector index climbed 4.8 percent, also reaching record levels.
China's export growth rebounded strongly in April, as factories rushed to meet a surge of orders from AI-related industries and other buyers seeking to stockpile components amid disputes over Iran.
Meanwhile, China’s producer price index beat expectations in April to hit a 45-month high, and consumer price inflation accelerated as global energy costs remained elevated, according to data released on Monday.
Analysts at CITIC Securities wrote in a note: “The growing global demand for AI-related computing will continue to support semiconductor-related exports going forward,” noting that China’s manufacturing cost advantage is becoming more apparent.
Separately, investors are also awaiting the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping, where Iran, Taiwan and artificial intelligence are scheduled to be discussed.
Analysts at Nomura said that amid rising tensions around the world, this summit could represent a step by which the two giants manage their rivalry, maintain a fragile calm, and avoid a complete breakdown in relations through high-level personal diplomacy.
