Hong Kong stocks rose on optimism that trade tensions with the US may soften following the latest remarks from the Trump administration.

The Hang Seng Index gained 2.4%, while The Hang Seng Tech Index jumped 3.1%.

Sentiment got a boost after US Treasury Secretary Scott Bessent told a closed-door investor summit Tuesday that the tariff standoff with China cannot be sustained by both sides and that the world’s two largest economies will have to find ways to de-escalate. Separately, President Donald Trump told reporters that US tariffs on China will come down “substantially” from their current level.

“This is what investors have been waiting for quite a while now and it’s certainly positive for Chinese stocks,” said Nick Twidale, chief analyst at AT Global Markets in Sydney. Any confirmation that US-China talks are progressing can “give the extra impetus to move higher.”

Bessent added that it was not the US’s goal to decouple from China and that the current status quo of 145% tariffs on Chinese goods by the US and 125% tariffs on US products by China was not sustainable.

Still, Trump’s unpredictable policy shifts and President Xi Jinping’s resolute stance in the tariff war will likely keep investors on their toes. In addition to levies, the US has also imposed new restrictions on Nvidia Corp.’s chip exports to China this month.

In terms of star stocks, XPeng rose 9%; Xiaomi rose 7%; Alibaba rose 6%; NIO and BYD rose 4%; Tencent, Baidu, and Meituan rose 3%; JD.com rose 2%.

Robot-related stocks surged in Hong Kong, with Dobot up 18%, Ubtech Robotics up 17%, Horizon Robot up 11%.

Gold fell for a second day after topping $3,500 an ounce for the first time, as investors booked profits and US President Donald Trump gave conciliatory gestures toward China and his central bank chief. Gold stocks dropped in Hong Kong. Chifeng Gold fell 16%; SD Gold fell 11%; Wanguo Gold fell 10%; Tongguan Gold fell 9%; China Gold International Resources and Lingbao Gold fell 8%; Laopu Gold fell 7%.