Alibaba Surges as Global Markets Show Mixed Signs

TDT | Manama

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Hong Kong, Monday – Chinese e-commerce giant Alibaba saw its shares soar nearly 20% on Monday following strong quarterly results, including a significant boost in AI-driven revenue. The company’s US-listed shares had also jumped 13% on Friday.

Alibaba’s performance lifted Hong Kong’s Hang Seng Index by 2%, while Shanghai gained 0.5%. However, other Asian markets struggled. Japan’s Nikkei dropped more than 1% as semiconductor stocks came under pressure, and South Korea’s Kospi fell despite record semiconductor exports in August amid rising US tariff concerns.

European markets showed a mixed picture. London and Paris opened higher, while Frankfurt slipped. Oil prices edged up slightly.

In the US, stocks retreated on Friday, with the Dow and S&P 500 pulling back from record highs ahead of the Labor Day weekend. A key US inflation reading suggested that the Federal Reserve might slow the pace of future interest rate cuts. Analysts say a 25-point rate reduction in September is still likely, but rapid or aggressive cuts may be difficult if inflation continues to rise.

Germany also saw inflation rise in August for the first time this year, which could limit the European Central Bank’s room for further rate cuts.

Meanwhile, a US appeals court ruled Friday that former President Donald Trump exceeded his authority when imposing broad tariffs using emergency powers. The tariffs remain in place, and Trump responded by saying, “The United States of America will win in the end.”

Tensions over trade continue. Last week, Japan’s tariffs envoy canceled a trip to Washington over a proposed presidential order that would require Japan to increase purchases of US rice, according to the Nikkei.