Asian technology stocks saw broad gains on Tuesday following President Donald Trump’s decision to temporarily pause tariffs on Mexico and delay duties on Canadian exports, CNBC reports.
Investors across major markets in Japan, South Korea, and Hong Kong responded positively, driving a rally that offset recent market concerns over global trade tensions.
In Japan, semiconductor companies led the charge, with Advantest and Lasertec posting significant gains of 5% and 4.81%, respectively. Other major players also saw an upswing, including Tokyo Electron (up 2.82%) and Renesas Electronics (up 2.99%). Tech conglomerate SoftBank Group advanced 1.53%, contributing to the sector’s overall positive momentum.
South Korean tech stocks mirrored the positive trend, as Samsung Electronics rose 4.13% and SK Hynix gained 0.63%. These gains marked a recovery from the previous week’s market softness and concerns over Samsung’s recent earnings miss.
Hong Kong tech giants also enjoyed a surge. Tencent rose 3.07%, while Meituan advanced 5.06%. Electric vehicle makers saw substantial gains, with BYD up 4.22%, Xpeng surging by 14.46%, and Li Auto climbing 9.35%. Alibaba and Kingsoft Cloud, both linked to AI technology, gained 3.09% and 7%, respectively.
The market’s buoyancy comes as tech stocks had faced earlier pressure following the rise of China’s open-source AI initiative, which had challenged the dominance of US-led technologies. However, the rally that started last week was reinvigorated by Trump’s decision to hold off on tariffs for a month and the potential for renewed trade negotiations.
The pause in tariffs for Mexico and Canada alleviated concerns over disruptions to supply chains involving Asian tech manufacturers. Trump’s upcoming talks with Chinese President Xi Jinping further fueled optimism that broader trade conflicts could be de-escalated.
