Hong Kong's Hang Seng index surged 2.8%, closing at a near two-month high of 20,790 on Tuesday, as traders anticipated the return of mainland trading after the Lunar New Year holiday.
Hong Kong stocks soar despite trade tensions
Despite new reciprocal tariffs between the US and China (including Chinese levies on US coal, LNG, crude oil, farm equipment, and some autos, plus an antitrust probe into Google), market sentiment remained positive. The tech sector led the rally, with a 5% jump in the tech index driven by AI stocks after DeepSeek's announcement of a new language model.
XPeng leads EV surge in Hong Kong
The EV sector also performed strongly, with XPeng soaring 12.3% on strong delivery numbers, and gains for Geely Auto and others. Tech giants Meituan and Xiaomi also saw significant increases.
