Hong Kong stocks rose for an eighth day on Monday, extending the longest winning stretch in a year. The Hang Seng Index advanced 2.98 per cent, adding to a cumulative 4.1 per cent gain over the past seven days. The eight-day run is the longest since the 10-day streak ending in May 2024. The Hang Seng Tech Index advanced 5.16 per cent.

The US and China will temporarily lower tariffs on each other’s products, according to a joint statement released in Geneva, in a move to cool trade tensions and give the world’s two largest economies three more months to resolve their differences.

Sunny Optical Technical up 14.8%; XPeng up 10.6%; NIO, Li Auto, BYD Company up more than 7%; Alibaba, JD.com up over 6%; Tencent up 4.6%.

The combined 145% US levies on most Chinese imports will be reduced to 30% including the rate tied to fentanyl by May 14, while the 125% Chinese duties on US goods will drop to 10%, according to the statement and officials in a briefing Monday.

The statement also said “the parties will establish a mechanism to continue discussions about economic and trade relations.”

The announcement represents a step toward de-escalating a tariff war that has led to an immediate slump in trade across the Pacific Ocean. The two countries had earlier reported “substantial progress” in their talks, which buoyed markets and helped Chinese stocks recoup their losses since President Donald Trump’s “Liberation Day” announcement of tariffs on April 2.