Hang Seng Index: Tech Stocks Rally as Tariff Developments Steady Asian Markets

US Equities See Mixed Session on Tariff Developments

US equity markets closed mixed on April 28 amid ongoing tariff uncertainties. The Nasdaq Composite Index ended its four-day winning streak, falling 0.10%. In contrast, the Dow and the S&P 500 rose 0.28% and 0.06%, respectively.

Investors turned cautious following last week’s rally, awaiting fresh updates from Washington on trade developments.

Tariff-related news and gains in the US Futures helped set the tone for the Asian markets opening on Tuesday, April 29. Markets reacted to President Trump’s plan to ease auto-sector tariffs, signaling a softer tariff stance.

Washington Signals Auto Tariff Cuts

Overnight, the US administration announced plans to lower auto tariffs. The administration will reportedly ease tariffs on foreign parts used in domestic car manufacturing. The move fueled hopes of a shift in tariff policies and lifted risk appetite.

However, news from China tested demand for Mainland China stocks. Beijing canceled a sizable shipment of US pork, targeting President Trump’s key farming constituency. Despite tensions, sentiment improved in Hong Kong markets.

Tech Surges in Hong Kong

Asian markets had a mixed Tuesday morning as investors considered tariff updates. The Hang Seng Index gained 0.12% on optimism surrounding a potential resumption of US and China trade talks.

Last week, Beijing reportedly eased tariffs on select US imports, offering signs of possible relief. However, pork shipment cancellations fueled uncertainty, capping gains. The tech sector led on optimism around AI development, with the Hang Seng Tech Index rising 0.81%.

• Tech stocks: Alibaba (09988.HK) gained 0.78%, while JD.com (09618.HK) rallied 2.77%.
• Auto stocks: Nio Inc. (09866.HK) jumped 4.91%, with Li Auto Inc. (02015.HK) advancing 2.76%.

Brian Tycangco, editor and analyst at Stansberry Research, commented:

“Hang Seng Tech Index retakes the 5,000 mark driven by BABA’s Qwen3 release and Huawei’s AI chip development. […] Markets holding the line as Beijing keeps its firm stance on tariffs.”

On April 29, CN Wire reported:

“Alibaba on Monday released and open-sourced the Qwen3 series of models, claiming that its performance in mathematics, programming, and other areas can rival that of DeepSeek. Compared with other mainstream models, Qwen3 also significantly reduces deployment costs. Alibaba stated that Qwen3 seamlessly integrates two thinking modes, supports 119 languages, and facilitates Agent invocation.”

Meanwhile, Mainland China’s equity markets posted early losses. The CSI 300 fell 0.13%, while the Shanghai Composite Index slipped 0.03% in morning trading.

However, the pullback was modest as investors considered Beijing’s confidence in meeting its around 5% 2025 GDP target and policy pledges.

Nikkei 225 Futures Rise on Tariff Shifts

Japan’s Nikkei 225 Futures climbed 190 points on Tuesday morning. (Japan’s main markets were closed for trading). Auto tariff relief and expectations of a US-Japan trade agreement buoyed risk sentiment. The USD/JPY pair trended higher, further supporting sentiment.

A softer Yen and a potential US-Japan trade agreement would improve the competitiveness of Japanese exports and potentially corporate earnings.

ASX 200 Hits Eight-Week High on Mining and Tech Stock Gains

Australia’s ASX 200 rallied 0.95% in morning trade, with mining and tech stocks driving the gains. Optimism over US tariff plans bolstered risk appetite.

• The S&P/ASX All Technology Index rallied 1.69%.
• Mining giants BHP Group Ltd. (BHP) and Rio Tinto Ltd. (RIO) posted gains of 1.62% and 1.67%, respectively, after a 0.97% rise in iron ore prices on April 28.
• Meanwhile, Northern Star Resources (NST) tumbled 5.53% after missing production targets and revising full-year guidance lower. Gold prices fell 1.07% to $3,308, weighing further on NST’s share price.

Outlook: Trade, Stimulus, and Central Bank Signals

Looking ahead, easing trade tensions, policy stimulus, and central bank cues remain key drivers of sentiment.

In the current environment of ongoing tariff uncertainties, traders may benefit from strategies closely aligned with trade and monetary policy dynamics.

For deeper analysis, please refer to our latest market coverage.