Hang Seng jumps by 1.4% as U.S. court blocks Trump tariffs

The Hang Seng surged 315 points, or 1.4%, to close at 23,573 on Thursday, recovering solidly from the prior day’s drop after a U.S. court ruled that President Trump had exceeded his authority in imposing sweeping tariffs on key U.S. trade partners.

Hang Seng jumps by 1.4% as U.S. court blocks Trump tariffs

Although the White House has already appealed the decision and may escalate the case to the Supreme Court, the ruling sparked optimism that some of the harshest tariff threats could be reconsidered or rolled back. This lifted investor sentiment globally, particularly in trade-sensitive and export-driven markets like Hong Kong. Technology stocks led the rally, climbing 2.5% on the back of robust earnings from Nvidia, which reinforced confidence in the broader tech sector. Consumer and financial stocks also posted solid gains, buoyed by UBS upgrading its 2025 GDP growth forecast for Hong Kong to 2.2%, up from a previous estimate of just 1%. The revised outlook reflects stronger-than-expected Q1 GDP figures, renewed IPO activity, a 90-day tariff truce between the U.S. and China, and a steady recovery in tourism flows as travel restrictions ease.

FOMC minutes tempered market enthusiasm

However, broader market enthusiasm was tempered somewhat by the release of the latest FOMC minutes, which revealed lingering concerns among U.S. policymakers about persistent inflation risks, particularly those tied to protectionist trade measures. Despite this, market breadth remained strong, with notable performances from key movers including Laopu Gold (up 7.6%), Meituan (6.9%), Kuaishou Technology (4.7%), and Trip.com (3.3%). Pharmaceutical stocks also rallied, driven by news that Chinese regulators are preparing a major overhaul of national drug pricing policies. This boosted investor confidence in the sector’s long-term profitability. Wuxi Biologics soared 9.8%, while Innovent Biologics climbed 3.1%, helping healthcare shares outperform. Overall, the session reflected growing investor optimism around a more favorable macro environment, though caution persists amid global policy uncertainties.