Investing.com -- Shares in Alibaba Group jumped as much as 12.5% in Hong Kong on Wednesday, their biggest single-day gain since September, as investors grew optimistic ahead of the e-commerce giant’s upcoming earnings and rotated capital into Chinese internet stocks that had lagged the broader market rally.

The tech giant’s U.S.-listed shares surged 10.3% in premarket trading by 04:25 ET.

The move pushed Alibaba to among the top gainers on the Hang Seng Tech Index, which climbed around 5%. Market watchers pointed to a pre-earnings briefing Alibaba held with analysts as the main catalyst. According to a report from local media outlet Jiemian, the company pointed to narrowing losses in its hotly competitive instant-commerce business in the June quarter while overall profitability held steady.

The rally also reflected a broader rotation trade gathering pace across Asia, as investors pull money from the chipmakers that powered this year’s gains in South Korea and Taiwan and look for cheaper ways to participate in the artificial intelligence boom. Chinese megacaps, which had fallen out of favour in recent months, are drawing fresh interest as investors search for less stretched valuations.

Tencent and JD.com each rose nearly 4%.

South Korea’s Kospi fell as much as 5.3% as money moved away from semiconductor-heavy markets. Adding to the positive mood around Chinese AI was a Reuters report that DeepSeek is developing its own chip to power AI systems, while The Information reported that Zhipu is considering designing its own AI chip.

Chinese equities have underperformed their North Asian peers for much of this year, and several key Hong Kong benchmarks had entered bear market territory on fading confidence in e-commerce firms and broader concerns about China’s economic outlook.