China's stock markets reopened after a weeklong Lunar New Year holiday to face escalating trade tensions with the United States. The Shanghai Composite Index dropped 0.7% and the CSI 300 Index fell 0.6%. Meanwhile, shares linked to the Chinese AI company DeepSeek surged, with companies like Guangzhou Anyka Microelectronics Co, Merit Interactive Co, and Tianyu Digital Technology (Dalian) Group Co reaching their daily limit. This rally in DeepSeek-related stocks occurred despite broader market concerns over U.S. tariffs on Chinese imports, set at 10%. In response, China announced its own tariffs on U.S. products, set to take effect on February 10. The U.S. had also imposed tariffs on imports from Canada and Mexico, but President Donald Trump delayed these for a month. Wall Street closed higher, supported by optimism about U.S.-China trade negotiations and strong corporate earnings, with the Dow Jones Industrial Average gaining 0.3%, the S&P 500 rising 0.72%, and the Nasdaq advancing 1.35%.