Hong Kong stocks closed lower on Tuesday as initial optimism from the tariff truce with the US gave way to concerns that Beijing won’t feel the need to urgently ramp up growth stimulus. The Hang Seng Index (HSI) decreased by 1.87%, the Hang Seng Tech Index (HSTECH) dropped by 3.24%.

Smoore International's stock price soared over 10% in the afternoon, reaching HKD 15.72. The company has shown strong performance in the new tobacco market, benefiting from the increasing penetration of new tobacco products overseas, particularly its HNB product GloHilo receiving positive feedback.

Gold stocks jumped with SD Gold up 4.8%. NIO, XPeng down over 5%; Meituan, BYD Company down 4%; Alibaba, Xiaomi, Li Auto down 3%; Tencent, JD.com down 2%.

The fading enthusiasm reflects worries that Chinese policymakers may feel less compelled to adopt potent measures, especially more fiscal spending, to shore up a slowing economy. It’s also a sign that investors are shifting their focus toward the material impact of still-higher US import duties, as well as uncertainties over further bilateral talks in the coming months.

The US said Monday it will slash duties on Chinese products to 30% from 145% for a 90-day period, while Beijing agreed to drop its levy on most goods to 10%. Trump also said that China had agreed to remove non-tariff barriers to US imports, suggesting even greater concessions could be in store if talks progress.