Following a US court ruling that blocked most of the so-called reciprocal tariffs imposed by former President Donald Trump, Hong Kong’s stock market saw a significant midday rally on Thursday, with investor confidence notably improving.
By midday, the Hang Seng Index had risen by 150 points to 23,408, marking a gain of 0.65%. Despite an early dip of around 50 points, the market quickly rebounded as the positive news encouraged buying activity. The half-day trading volume reached HKD 110.92 billion, reflecting strong liquidity and active trading.
The technology sector performed particularly well, with the Hang Seng Tech Index climbing 80 points to 5,255, a 1.56% increase. Meituan (stock code 3690), the most actively traded tech stock, surged nearly 5% to HKD 137.90, becoming one of the top-performing blue-chip stocks. Investors remain optimistic about tech companies’ growth prospects, especially amid easing trade tensions.
Mainland China’s markets also showed gains by noon. The Shanghai Composite Index increased by 24 points, or 0.7%, to 3,363, while the Shenzhen Component Index rose 111 points, or 1.12%, to 10,115. This positive momentum reflects market optimism over the easing of US-China trade frictions and confidence in stable domestic economic growth.
The court’s decision marks a significant development in reducing trade barriers and stabilizing market expectations. The reciprocal tariffs had been introduced by the Trump administration to address trade imbalances but triggered intensified international trade conflicts and weighed on global markets. This ruling provides a boost to investor sentiment and helped lift the markets.
Analysts caution that while the short-term outlook appears positive, investors should remain alert to ongoing US-China trade negotiations and policy developments. Prudent asset allocation is advised to mitigate potential risks.
In summary, the US court’s blocking of reciprocal tariffs has not only lifted Hong Kong’s stock market but also positively influenced mainland markets, reflecting widespread hope for reduced trade tensions. Market watchers will continue to closely monitor changes in the international trade environment and related policies in the coming weeks.
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