Asian stocks saw a significant rise on Monday, with Hong Kong’s Hang Seng index leading the charge, up 2.7%, fueled by a positive signal from U.S. authorities regarding trade tariffs. The boost in technology stocks followed the news that electronics, including major tech products, would be temporarily exempt from steep tariffs on China, which had previously been a major concern.
The rally across Asian markets mirrored Wall Street’s strong performance on Friday, which was driven by positive earnings from U.S. banks and assurances of continued economic support from the Federal Reserve. U.S. stock index futures also gained, with the S&P 500 Futures up by about 1%.
Hong Kong’s market stood out, driven by tech stocks. Companies like Lenovo, Alibaba, and Baidu saw strong gains, with Lenovo topping the Hang Seng with a 5.4% increase. This surge came after the White House announced that electronics would be excluded from President Trump’s 145% tariffs on China, temporarily easing concerns for U.S.-China trade relations.
However, despite the temporary tariff relief, President Trump warned over the weekend that he plans to impose separate tariffs on electronics, potentially including semiconductors. Additionally, Trump indicated he would initiate a national security trade investigation into the chipmaking industry while maintaining a 20% tariff on electronics imports from China imposed in March.
Elsewhere in Asia, South Korea’s KOSPI gained 1%, while Japan’s Nikkei 225 rose by 1.5%. Mainland Chinese stocks, on the other hand, lagged behind due to ongoing tensions in the U.S.-China trade war. The Shanghai Composite rose 0.8%, and the Shanghai Shenzhen CSI 300 increased by 0.5%.
China has retaliated with heavy tariffs on U.S. goods, further escalating trade tensions. In response, Beijing is expected to introduce more economic stimulus measures to mitigate the trade war’s impact. Meanwhile, China’s first-quarter GDP data, set to be released later this week, will provide more insight into the country’s economic outlook.
Other Asian markets also saw gains on Monday. Australia’s ASX 200 rose by 1.3%, Japan’s TOPIX advanced 1.5%, and Singapore’s Straits Times index soared by 1.8%. The latter’s growth was driven by the country’s heavy reliance on electronics exports. However, Singapore’s economy grew slower than expected in the first quarter of 2025, leading to a reduced growth forecast for the year. Despite this, the Monetary Authority of Singapore eased its monetary policy and revised its inflation outlook downward for 2025.
In India, markets were closed for a holiday.
Despite the positive market movements, concerns about the ongoing trade war between the U.S. and China remain, leaving investors cautious.
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