Stock markets across Asia and Europe rose on Monday after the US announced that a number of electronic goods would be temporarily exempt from recently imposed tariffs under President Donald Trump’s trade policy.
The gains were most pronounced in Asia, where Hong Kong’s Hang Seng Index led regional markets with a 2.4% increase. The Hang Seng Tech Index also climbed more than 2%. On the mainland, China’s Shanghai Composite Index added 0.76%, and the Shenzen Component Index rose by 0.51%.
In Japan, the Nikkei 225 rose 1.18%, and the broader Topix Index increased nearly 0.9%. South Korea’s Kospi was up 0.95%, while Australia’s S&P/ASX 200 gained 1.34%. Taiwan’s Taiex Index slipped slightly by 0.08%.
Technology stocks led much of the surge. Tokyo Electron rose 2%, Advantest jumped 5.4%, and Samsung Electronics gained 1.4%.
In Europe, the STOXX 600 opened 1.8% higher. National indexes followed suit: Germany’s DAX rose more than 2%, France’s CAC 40 climbed 1.9%, and the UK’s FTSE 100 added 1.95%.
US stock futures were also up ahead of Monday’s market open. Futures tied to the Dow Jones Industrial Average rose 0.71%, while S&P 500 and Nasdaq-100 futures gained 1.19% and 1.57%, respectively.
The market rally followed a bulletin released late Friday by US Customs and Border Protection, which confirmed that smartphones, computers, semiconductors, and other electronics would be excluded from new reciprocal tariffs for now. This move came as a surprise to investors, particularly those in the tech sector who have been concerned about potential fallout from tariffs that were announced earlier this month, including a 145% levy on all goods from China.
Major US tech stocks responded positively in early trading. Apple shares rose more than 5%, while Nvidia gained over 3%. The Technology Select Sector SPDR Fund (XLK) advanced more than 2% premarket.
Despite the market gains, uncertainty remains. President Trump and his administration emphasized that the exemptions are temporary, with further decisions pending under a new national security review. Trump stated on Truth Social that these items are simply being reassigned to a different tariff category and remain subject to existing levies, including the 20% “fentanyl tariffs.”
“There was no tariff ‘exemption’ announced on Friday,” Trump wrote. “Nobody is getting ‘off the hook’… especially not China.”
Commerce Secretary Howard Lutnick echoed the sentiment, confirming over the weekend that tariff policy is still evolving and more details will be announced soon.
Markets have experienced heightened volatility in recent weeks due to ongoing trade developments. While last week saw one of the most volatile stretches in recent memory—highlighted by a dramatic mid-week rally and a volatility index spike—Monday’s early momentum suggests cautious optimism fueled by earnings beats and hopes for more clarity on trade policy.
Still, broader concerns linger. Since the initial announcement of the reciprocal tariffs, the S&P 500 has dropped 5.4%, the Nasdaq Composite has fallen 5%, and the Dow Jones is down 4.8%. The “Magnificent Seven” group of major tech companies, including Apple, have been especially impacted, with Apple alone losing nearly $640 billion in market cap in the three days following the initial tariff news.
Analysts warn that while the exemption news provides short-term relief, investors should remain watchful of future announcements as US trade policy continues to evolve.
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