BEIJING, 27 JAN

Global stock markets are experiencing sharp contrasts following the groundbreaking release of DeepSeek, a Chinese AI startup. The company's latest product has shaken the tech world, sending ripples across financial markets.

US stock futures plunged during Asian trading hours on Monday, with the Nasdaq 100 dropping 1.9 per cent and S&P 500 futures sliding 1 per cent. Japanese chipmakers also faced heavy losses, with Advantest Corp. shares tumbling 8.6 per cent.

In contrast, Chinese and Hong Kong tech shares surged, driven by optimism surrounding DeepSeek’s rapid rise. The company’s DeepSeek-V3 model, trained using Nvidia’s H800 chips at a cost under $6 million, has overtaken ChatGPT as the top-rated free app on Apple’s US App Store.

The development raises concerns about the dominance of US tech giants like Nvidia, OpenAI, and Google. Hong Kong’s Hang Seng Tech Index rose 2 per cent, while Japan’s Nikkei 225 futures fell 0.6 per cent, reflecting the market’s mixed reaction.