HONG KONG, Feb 23 (Reuters) - Hong Kong stocks jumped on Monday, led by tech and mainland shares listed in the city, as China is set to receive lower tariffs after the U.S. Supreme Court ruling.
By the noon trading break, the benchmark Hang Seng Index (.HSI) advanced 2.3% to 27,019.21, the strongest level since Feb 12.
The Hang Seng China Enterprises Index (.HSCE) which tracks major mainland firms listed in the city, bounced 2.5%, on track for its best single-day gain in a month.
Sentiment was largely upbeat following the U.S. Supreme Court’s decision on Friday to strike down Donald Trump’s sweeping tariffs, which China is making “full assessment” of.
China should see the largest tariff reduction as it faces the highest tariff rates at the outset, declining to 24% from 32%, according to analysts at Morgan Stanley.
U.S. President Donald Trump will travel to China from March 31 to April 2 for a highly anticipated meeting between the leaders of the world’s two biggest economies.
“The U.S. tariff ruling and Trump’s finalized China visit schedule is lending a support to risk appetite,” Zhang Qiyao, chief strategy analyst at Industrial Securities, wrote in a note.
“Although Trump may seek other tariff tools as substitutes which could still bring some uncertainty, the risk of sharp twists in U.S.-China relations will be relatively controllable in near term ahead of his visit,” he added.
The Hang Seng Tech Index (.HSTECH) rallied as much as 4% to rebound from a seven-month low struck in the Friday trading session amid renewed optimism towards China’s AI developments.
Alibaba (9988.HK) jumped 3.6% and Tencent (0700.HK) rallied 3.3%. Chipmaker SMIC (0981.HK) surged 4.6%, the best gain in nearly two months.
Investors are also digesting early data releases for the Chinese New Year holiday period, which delivered a “broadly firm” demand signal, with upbeat retail sales, resilient travel and improved home sales, according to Citi analysts.
“With the economy off to a steady start, market focus will shift to the NPC starting March 5th,” they wrote in a note.
Around the region, MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was up 1% in light trade.

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Hong Kong stocks surged on February 23, led by tech shares, following a U.S. Supreme Court ruling that reduced tariffs on China. The Hang Seng Index rose 2.3% to 27,019.21, while the Hang Seng China Enterprises Index increased by 2.5%. Analysts predict a significant tariff reduction for China, from 32% to 24%. U.S. President Trump is scheduled to visit China from March 31 to April 2, which is boosting market sentiment. The Hang Seng Tech Index climbed 4%, with notable gains from Alibaba and Tencent. Overall, the market is optimistic about China's economic recovery and upcoming events.

- Hong Kong stocks surged on February 23, with the Hang Seng Index rising 2.3% to 27,019.21, bolstered by positive sentiment following a U.S. Supreme Court ruling on tariffs.  
- The ruling reduced tariffs on China from 32% to 24%, prompting optimism in the market as U.S. President Trump plans a visit to China in late March.  
- Major tech stocks, including Alibaba and Tencent, saw significant gains, while early data indicated strong demand during the Chinese New Year holiday, leading to positive economic outlooks.

Hong Kong shares bounce after US Supreme Court tariff ruling; tech shares lead