Hong Kong stocks leapt about 2 percent to a new high in about six weeks, driven by the surprising 90-day tariff reduction between China and the United States.
The US and China have agreed to significantly reduce their bilateral tariffs for a 90-day period to 10 percent on US exports and 30 percent on shipments from China, beating market estimates.
On the joint statement released around 3pm in Hong Kong, the market benchmark Hang Seng Index hit as high as 23,685 points, after hovering below 23,200 in the afternoon session.
The indicator ended at 23,549 on Monday, 681.7 points or 2.98 percent higher than the previous close, its highest since March 27.
The full-day main board turnover amounted to HK$322 billion, the highest in over a month.
The Hang Seng Tech Index extended gains to more than 5 percent after closing at 5,447. The Hang Seng China Enterprises Index grew by 3 percent to 8,559.
Amid progressive Sino-US trade talks, gold dived about 3 percent to US$3,229 (HK$25,186) per ounce and oil rebounded by over 3 percent.
US stock futures surged as well, led by Nasdaq futures’ 3.46 percent gain as of 4.46 pm in Hong Kong.
Apple’s suppliers grew further, with Sunny Optical (2382) leaping 14.8 percent on Monday. AAC Technologies (2018) and Q Technology (1478) increased by 15.4 and 13.45 percent, respectively.
Xiaomi (1810) also saw its decline narrow to 1.46 percent, recovering some losses following reports that some electric vehicle buyers may withdraw their orders over the controversy surrounding its SU7 Ultra's front hatch.
In contrast, Alibaba (9988) and Tencent (0700) further climbed by 6.15 and 4.63 percent, respectively.
In mainland China, the Shanghai Composite Index climbed 0.82 percent to 3,369 and the Shenzhen Component Index gained 1.72 percent to 10,301 when the markets closed at 3pm.
STAFF REPORTER
