Hong Kong stocks jump 3% for best performance in 2 months as China, US agree to cut tariffs

The Hang Seng Index closed 3 per cent higher at 23,549.46, its best one-day performance since March 6. Sentiment received a boost in the afternoon after China and the US agreed to substantially lower tariffs on each other’s goods. The eight-day run is the longest since a 10-day streak ended in May 2024, notching up a 7.2 per cent cumulative gain. The Hang Seng Tech Index advanced 4.7 per cent.

On the mainland, the CSI 300 Index climbed 1.2 per cent and the Shanghai Composite Index added 0.4 per cent. The onshore yuan strengthened 0.3 per cent against the US dollar.

Futures contracts on three US stock benchmarks rose at least 2 per cent during Asian-hours trading, while haven trade unravelled, with spot gold prices sliding as much as 3.3 per cent.

WATCH LIVE: US Treasury Secretary Scott Bessent holds press briefing

WATCH LIVE: US Treasury Secretary Scott Bessent holds press briefing

Export-oriented companies led the pack of gainers. Sunny Optical Technical Group, the maker of camera modules for mobile phones that derived more than 40 per cent of its sales from overseas last year, rallied 15 per cent to HK$73.95. Hong Kong machine tool maker Techtronic Industries, which counted on North America for 76 per cent of its revenue in 2024, surged 6.7 per cent to HK$92.10. Chinese personal-computer maker Lenovo Group climbed 9.6 per cent to HK$10.18 and household appliance maker Haier Smart Home jumped 8.3 per cent to HK$24.70.

The combined 145 per cent US levy on most Chinese imports will be reduced to 30 per cent, including the rate tied to fentanyl by Wednesday, while the 125 per cent Chinese duty on US goods will drop to 10 per cent, according to a joint statement released by the two nations. Both reductions are in place for 90 days.