Alibaba rocketed almost 20% following bumper results on Friday, including a surge in AI revenue. Its US-listed shares added 13% on Friday too.

Alibaba lifted the Hang Seng by 2% and Shanghai rose 0.5%.

Other Asian indexes were in the red, however, with Japan’s Nikkei off more than 1% as chip shares came under pressure.

Seoul’s Kospi was also off even after South Korean data showed record monthly semiconductor exports in August despite growing pressure from US tariffs.

In Europe, London and Paris were higher in early trade, but Frankfurt fell back. Oil prices edged up.

On Friday US stocks fell, with the Dow and S&P 500 retreating from record highs ahead of the long Labour Day weekend.

An acceleration of a key US inflation reading lowered prospects for sustained interest rate cuts by the Federal Reserve in the coming months.

Although a September cut of 25 points is probably still on the cards, “it may be hard for them to move as quickly or aggressively as they’d like, with inflation moving higher,” said eToro analyst Bret Kenwell.

German inflation rose in August for the first time this year, data showed Friday, which could lessen the chances for further European Central Bank rate cuts too.

On tariffs, a US appeals court ruled Friday that President Donald Trump exceeded his authority in tapping emergency economic powers to impose wide-ranging duties.

The tariffs remained in place for now though, and hitting out at the ruling Trump said that “the United States of America will win in the end”.

Japan’s tariffs envoy cancelled a trip to Washington last week over plans for a presidential order including stepped-up Japanese purchases of US rice, the Nikkei reported.