Mainland China and Hong Kong stocks climbed on Thursday, snapping a five-day losing streak. The reason? A U.S. trade court ruled against Donald Trump’s sweeping “reciprocal tariffs,” giving investors a much-needed break from weeks of market tension.
The Shanghai Composite rose 0.72% to 3,363.97, while the blue-chip CSI300 jumped 0.68% to 3,862.44. Over in Shenzhen, tech shares soared, with the STAR50 index gaining 1.25%. Hong Kong’s Hang Seng Index also edged up 0.65%.
A calmer stock market means less panic, more confidence in trade, and fewer nasty surprises on global supply chains. But don’t exhale just yet—this isn’t the end of the U.S.-China trade saga.
The court ruling said Trump overstepped his powers by applying blanket tariffs. That’s a big legal slap on the wrist. For investors, it was a green light to get back into the game. Equity futures, bond yields, and even the U.S. dollar saw a lift. Gold, the traditional safe haven, dropped as risk appetite came back from vacation.
But the celebration might be short-lived.
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Risky Business, with a Legal Twist
“The ruling gives an interim boost to risk sentiment,” said Frances Cheung of OCBC Bank. “But the development of tariff and trade relations remains fluid.”
In plain English? Sure, today’s news is good. But tomorrow could throw a curveball.
Meanwhile, the U.S. quietly told software companies they must get a license before selling chip design tools to China. Translation: semiconductor tension just got worse. And that’s not all—Secretary of State Marco Rubio announced a plan to yank student visas for those linked to China’s Communist Party or sensitive academic fields. That’s less diplomacy, more Cold War cosplay.
But China Isn’t Just Watching
One standout winner in this mess? Empyrean Technology, a Beijing-based EDA firm, surged nearly 12%. Why? It’s China’s answer to American chip design giants like Cadence and Synopsys. While Washington shuts doors, Beijing builds its own.
So yes, China stocks are up. But the game’s far from over. Today’s rally feels like a pause in the storm, not the end of it.
The global economy is still navigating a bitter breakup between two superpowers. And no court ruling—however welcome—can rewrite that script overnight.
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