Hong Kong shares pared early gains and closed higher on Tuesday, with tech heavyweights lifting market sentiment.
The benchmark Hang Seng Index rose 45 points, or 0.18 percent, to 25,087 points, with a full-day market turnover of HK$249.2 billion.
The Hang Seng Tech Index increased by 0.34 percent to 4,438 points.
Tencent (0700) surged the most among blue chips, up 5 percent, as the market reassessed its value for the potential to bring out agentic AI like Meta's Muse backed by WeChat's billion-plus users. It also released a new image-generation model, Hy Image 3.5 Preview, on the same day.
Alibaba (9988) also jumped nearly 2 percent after unveiling its latest powerful artificial intelligence chip.
Lenovo (0992) climbed 2.8 percent, while Kuaishou Technology (1024) and JD.com (9618) advanced over 1 percent.
In contrast, ZTO Express (2057) dropped 5 percent after Alibaba reportedly offloaded US$500 million (HK$3.9 billion) worth of its American depository receipts, marking the worst performer among HSI constituents, followed by a 4 percent decrease in its peer J&T Global Express (1519).
China's AI giant underperformed the market, with MiniMax (0100) and Z.AI (2513) slipping 3.9 percent and 6.6 percent, respectively.
In the mainland, the Shanghai Stock Exchange Composite Index inched up 0.06 percent to 3,952 points, while the Shenzhen Stock Exchange Component Index dipped 0.05 percent to 13,723 points.
