Asian stocks climbed on February 20, 2025, driven by optimism over a meeting between Chinese President Xi Jinping and business leaders. The regional stock benchmark reached its highest level since early November, with Hong Kong and Chinese markets rallying. Australian stocks, however, continued their losses following an interest rate cut by the central bank.
Asian stock markets experienced a significant surge on February 20, 2025, as optimism over Chinese President Xi Jinping’s meeting with business leaders spurred confidence in the private sector. The regional stock benchmark climbed to its highest level since early November, driven by gains in Hong Kong and China markets.
Hong Kong-listed technology stocks saw notable gains, with Alibaba Group Holding Ltd. and Xiaomi Corp. contributing heavily to the rally. The optimism was further fueled by DeepSeek’s breakthrough in artificial intelligence, adding over $1 trillion in market value to Chinese shares. Analysts believe the high-profile meeting, which included major figures such as Alibaba co-founder Jack Ma, signals a possible end to Beijing’s regulatory crackdown on private enterprises.
In contrast, Australian stocks continued their downward trend as the Reserve Bank of Australia cut its key interest rate. The Australian dollar briefly gained before paring back, with the central bank maintaining a cautious stance on future rate adjustments.
Meanwhile, U.S. Treasury 10-year yields rose by 3 basis points to 4.5%, as the bond market reopened after the Presidents’ Day holiday. Federal Reserve Governor Christopher Waller reiterated the need to keep interest rates on hold until further progress on inflation is observed.
China’s government bond yields also climbed, with the 10-year yield rising by 4 basis points to 1.73%, the highest level since December. This increase was driven by tightening cash conditions and rising stock markets reducing the demand for debt.
In commodity markets, oil prices held steady after OPEC+ delegates hinted at delaying production increases, and Ukrainian drone strikes targeted a crude-pumping station in Russia. Gold maintained its gains following a 0.5% rise the previous day.
With financial markets responding to global economic developments, the meeting between President Xi and business leaders signals a potentially transformative moment for China’s private sector. Investors remain hopeful that these positive signals will translate into sustained market growth.
