Hong Kong shares rise over 2% to lead gains in Asia after Trump pauses tariffs on consumer electronics

Asia-Pacific markets climbed Monday as U.S. President Donald Trump paused tariffs on some consumer electronics, boosting risk sentiment.

Hong Kong stocks led gains in the region, with the Hang Seng Index up 2.12% and Hang Seng Tech Index trading 2.08% higher.

Mainland China’s CSI 300 was up 0.23%.

Japan’s benchmark Nikkei 225 rose 1.50% while the broader Topix index rose 1.21% in its last hour.

In South Korea, the Kospi index added 0.93% while the small-cap Kosdaq advanced 1.87% in its final hour of trade.

Meanwhile, Australia’s S&P/ASX 200 closed 1.34% higher at 7,748.60.

Indian markets were closed for a public holiday.

Trump exempted smartphones and computers as well as other devices and components such as semiconductors from his new “reciprocal” tariffs, according to a U.S. Customs and Border Protection guidance issued late Friday.

However, Trump and Commerce Secretary Howard Lutnick suggested Sunday that the exemptions were not permanent, stirring up more uncertainty.

Trump said in a Truth Social post that these products were still “subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff ‘bucket.'”

Several countries in the region are also preparing for trade negotiations with the U.S. this week.

Trump is engaging in negotiations with countries including Vietnam, India, South Korea and Japan, and is prioritizing existing trading partners that are strategic to countering China, according to two people close to the White House, reports from Politico show.

Japan’s top trade representative Akazawa Ryosei is slated to visit the U.S. this week for talks with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, according to local broadcaster NHK.

— CNBC’s Sean Conlon, Hakyung Kim and Pia Singh contributed to this report.