Major stock markets in Asia and Europe experienced significant gains in Monday trading, buoyed by the recent announcement from the U.S. regarding key consumer electronics. The U.S. decision to temporarily exempt certain electronics from President Donald Trump's reciprocal tariffs has led to a positive market sentiment across various regions. This news has particularly impacted technology stocks, sparking optimism among investors.
Leading the regional gains, Hong Kong's Hang Seng Index closed up by an impressive 2.4%, while the Hang Seng Tech Index saw a growth of more than 2%. On the mainland, the Shanghai Composite Index rose by 0.76%, and the Shenzhen Component Index increased by 0.51%. In Japan, the Nikkei 225 index in Tokyo surged 1.18%, with the broader Topix index experiencing a nearly 0.9% rise. Additionally, South Korea's Kospi index grew by 0.95%, and Australia's S&P/ASX 200 closed 1.34% higher. Conversely, Taiwan's Taeix index saw a slight decline of 0.08%.
Technology stocks were particularly noteworthy in this trading session. Notable gains included Tokyo Electron, which rose by 2%, and Advantest, a testing equipment manufacturer, which saw a remarkable increase of 5.4%. Additionally, Samsung Electronics from South Korea gained 1.4%, reflecting the overall positive trend in the tech sector.
In Europe, the pan-continental STOXX 600 index opened with a 1.8% increase. Germany's DAX index rose by more than 2%, while France's CAC 40 and Britain's FTSE 100 saw gains of 1.9% and 1.95% respectively. This upward trend in European markets signifies strong investor confidence, likely influenced by the U.S. tariff exemption news.
U.S. futures also reflected this optimism. As of Monday morning, Dow Jones futures were up 0.71%, S&P 500 futures increased by 1.19%, and Nasdaq futures rose by 1.57%. This upward movement indicates a potential continuation of the positive trend in U.S. markets following the tariff news.
According to a bulletin from the U.S. Customs and Border Protection published Friday night, items such as smartphones, computers, flat panel TV displays, memory chips, and semiconductor-based storage devices are among the electronics exempted from Trump's reciprocal tariffs. This announcement has provided a sense of relief to tech companies that were previously concerned about the imposition of Trump's 145% tariffs on all goods imported from China.
However, both President Trump and his economic advisers emphasized that this reprieve would be temporary. Specific tariffs are expected to be imposed on goods classified under a new national security designation. Trump took to Truth Social on Sunday, clarifying that there was no permanent tariff exemption announced on Friday. He stated that semiconductor tariffs would simply be reclassified into a different tariff category, asserting that no one is escaping the consequences of unfair trade practices, particularly from China.
Trump also mentioned that the government is actively reviewing the entire electronics supply chain as part of upcoming national security tariff investigations. He assured that more specific details regarding the exemptions would be provided on Monday. With the U.S. taking in significant revenue, the discussions surrounding tariffs and trade policies remain a pivotal point in economic conversations.
This report has been compiled with contributions from ABC News' Selina Wang, Fritz Farrow, and Joe Simonetti, providing a comprehensive overview of the recent developments in the global stock markets.
