Market Rebound: Tech Stocks Surge Amid US Tariff Exemption

Chinese and Hong Kong equity indexes rose as tech shares climbed following the White House's decision to exempt smartphones and computers from U.S. tariffs. The gain was capped by national security concerns over Chinese chips. Apple's suppliers and automakers benefited, while semiconductor stocks faced pressure.

On Monday, Chinese and Hong Kong equity indexes surged as technology shares climbed after the White House granted exemptions for smartphones and computers from impending U.S. tariffs. This bolstering of tech stocks contrasts with the lingering concerns over national security that weighed on the chip sector.

In China, the blue-chip CSI300 Index rose by 0.2%, while the Shanghai Composite Index gained 0.8% by the close of trading, following significant losses in the previous week. Hong Kong's Hang Seng Index shot up 2.4% rebounding from last week's 8.5% decline, with the Hang Seng Tech Index increasing by 2.3%.

Despite the temporary relief for Apple suppliers, with notable gains for their CSI Electronics Index and partner Foxconn Industrial Internet, worries persisted for the semiconductor industry. The CSI Semiconductor Index dipped by 0.9% as U.S. President Trump announced an impending national security review of Chinese chips, maintaining tension in trade talks.

(With inputs from agencies.)