Chinese Stocks Hit Decade-High Amid Renewed AI Optimism

China's stock markets marked a notable achievement on Friday as the Shanghai Composite Index soared to a fresh ten-year high, while the Hang Seng Index in Hong Kong climbed to levels last seen four years ago.

Renewed optimism in artificial intelligence was a driving factor, with tech giants Alibaba and Baidu experiencing significant gains. Reports indicated that these companies began using internally-designed chips for AI, leading to higher investor confidence.

Moreover, U.S. Treasury Secretary Scott Bessent's planned meeting with Chinese officials in Madrid added to the positive market sentiment. As regional indices rose, optimism about potential U.S. interest rate cuts also contributed to the buoyancy in the markets.

(With inputs from agencies.)