Asian Stocks Rally as Tech Surges on Temporary U.S. Tariff Relief

Asian stocks climbed sharply on Monday, led by a 2.7% surge in Hong Kong’s Hang Seng Index, driven by tech gains after the U.S. announced temporary exemptions on electronics from steep China tariffs. The rebound followed a strong Wall Street session on Friday, supported by Federal Reserve economic assurances and robust U.S. bank earnings.

S&P 500 Futures rose nearly 1% in Asian trading, with major tech firms like Apple Inc (NASDAQ:AAPL), which rely on Chinese manufacturing, expected to benefit. The tariff relief sparked rallies in tech-heavy Asian markets, with South Korea’s KOSPI up 1%, Japan’s Nikkei 225 gaining 1.5%, and Singapore’s Straits Times Index jumping 1.8%—notably due to its heavy electronics export exposure.

Hong Kong-listed tech giants with U.S. export ties saw sharp gains. Lenovo Group (HK:0992) led with a 5.4% rise, while Alibaba (HK:9988), Baidu (HK:9888), and Haier Smart Home (HK:6690) advanced between 4% and 5.5%. However, U.S. President Donald Trump warned the tariff reprieve was temporary, with plans to introduce separate duties on electronics and launch a national security probe into the semiconductor sector. Imports still face a 20% tariff imposed in March.

Mainland Chinese stocks were more subdued, with the Shanghai Composite up 0.8% and the CSI 300 rising 0.5%, as Beijing contends with escalating trade tensions. China recently retaliated with 125% tariffs on U.S. goods and is expected to unveil more stimulus to cushion its economy. Upcoming Chinese GDP data and other key Asian economic indicators remain in focus.

Australia’s ASX 200 added 1.3%, while Japan’s TOPIX also climbed 1.5%. Indian markets were closed for a public holiday. Singapore’s MAS, citing weaker-than-expected growth, eased monetary policy and cut its 2025 inflation outlook.