FX.co ★ Hang Seng Finishes at 2-Month Peak After Tech Tariff Relief

The Hang Seng Index surged by 503 points, equivalent to a 2.4% increase, closing at 21,417 on Monday. This marks the second consecutive session of gains and represents the highest closing level in two months. The market was lifted by widespread buying, particularly within the technology sector, which rose by 2.3%. This uplift followed the announcement of tariff exemptions on technology goods by the Trump administration; many of these goods are imported from China. Traders appeared to dismiss concerns over potential new US tariffs on items like chips that could be introduced in the upcoming weeks or months. Additionally, optimism was fueled by Beijing's continued measures to stabilize its domestic markets, such as imposing a CNY 50 million cap on daily net sales by individual hedge funds and significant retail investors. Economically, China's trade surplus widened in March, aided by a sharp increase in exports and a continued decline in imports, occurring prior to anticipated tariff increases. Among the day’s notable performers were PICC Property and Casualty, which rose by 2.7% on optimistic earnings forecasts, as well as Hong Kong Exchanges & Clearing, Pop Mart Intl., AIA Group, and Geely Auto, which saw gains of 6.9%, 5.6%, 4.2%, and 3.9%, respectively.