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Asia stocks jump, Hang Seng up over 2% on some US tariff relief

2025-04-14 12:26:08

Asian stocks rose sharply on Monday, with Hong Kong’s Hang Seng index up the most on gains in technology after U.S. authorities signaled that electronics would be temporarily exempt from steep trade tariffs on China.

Gains in Asian markets also came following a positive Friday session on Wall Street, following assurances of economic support from the Federal Reserve, as well as a swathe of strong bank earnings.

U.S. stock index futures rose in Asian trade on Monday, with S&P 500 Futures up about 1%. Tech majors such as Apple Inc (NASDAQ:AAPL), which depend heavily on China for manufacturing, are expected to clock strong gains on the limited tariff relief.

Hang Seng rallies over 2% as Asia tech cheers some US tariff exemptions

Hong Kong’s Hang Seng index was by far the best performer on Monday, rallying 2.7%. Other tech-heavy bourses in the region also advanced, with South Korea’s KOSPI adding 1%, while Japan’s Nikkei 225 index rose 1.5%.

Hong Kong-listed tech stocks, particularly those with U.S. export exposure, logged strong gains after the White House signaled on Friday that electronics will be exempt from President Donald Trump’s steep 145% tariffs on China. PC maker Lenovo Group (HK:0992) was the top gainer on the Hang Seng, with a 5.4% gain. Other tech majors including Alibaba (HK:9988), Baidu (HK:9888), and Haier Smart Home Co Ltd (HK:6690) rose between 4% and 5.5%.

But Trump said over the weekend that this was temporary, and that he was planning to announce separate tariffs on electronics, which could include semiconductors. Trump also pledged a national security trade investigation into the chipmaking sector, while noting that electronics imports from China were still subject to a 20% tariff imposed in March.

Mainland Chinese stocks were less upbeat than their regional peers, given that Beijing faces a dire trade war with the United States. The Shanghai Shenzhen CSI 300 rose 0.5%, while the Shanghai Composite added 0.8%.

China had retaliated with 125% tariffs on U.S. goods last week, in response to Trump’s tariff escalation. Beijing is also expected to ramp up its stimulus measures to help weather the economic headwinds of a trade war.

Chinese first-quarter gross domestic product data is due later in the week, as are key economic readings from several other Asian countries.

Asia stocks advance, but trade war fears remain

Broader Asian markets advanced on Monday, recouping a measure of recent losses. But investors remained on edge over more trade-related disruptions, especially in the face of a growing U.S.-China trade war.

Australia’s ASX 200 added 1.3%, while Japan’s TOPIX rose 1.5%.

Singapore’s Straits Times index soared 1.8%, given that the country is also heavily reliant on electronics exports.

Singapore’s economy grew less than expected in the first quarter of 2025, government data showed on Monday, with the economy also forecast to grow less than expected this year.

But the Monetary Authority of Singapore eased policy as expected on Monday, while also slashing its outlook for consumer inflation in 2025.

Indian markets were closed for a holiday.

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