** Shares of China's top chip manufacturer Semiconductor Manufacturing International Corp (SMIC) 0981.HK jump 8.4% to HK$41.20
** Stock top pct gainer in both Hang Seng Index .HSI and Hang Seng Tech Index .HSTECH, which are down 1.5% and 2% respectively following U.S. President Donald Trump imposing sweeping tariffs
** "For SMIC and Hua Hong 688347.SS, it could mean less urgency to produce cutting-edge AI chips," Morningstar said in a note last week on DeepSeek's impact on Asian tech stocks, adding SMIC has been strong YTD on government subsidies on domestic appliances
** "While there will be elevated short-term volatility as demand may fluctuate, with efficiency gains and wider adoption, we're bullish over the long-term as wider adoption should win out and lead to sustainable AI investments" - Morningstar
** Hang Seng Commerce & Industry Index .HSNC falls 1.3%
** SMIC stock soared 60.1% last year
(Reporting by Donny Kwok)
((donny.kwok@thomsonreuters.com))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.