Investors Optimistic About Technology Stocks as Improved Tariff Agreements Expected

Technology stocks around the globe saw a rise on Monday as investors showed optimism that US President Donald Trump may offer some concessions when he finalizes his tariff strategies.

Late Friday, the US administration announced measures that exempt smartphones, computers, and other electronics from its proposed reciprocal tariffs. While Trump acknowledged that these exemptions would be temporary, investors appeared to find comfort in this reprieve, which allows companies and lobbyists to advocate for alternative parameters and exclusions.

“The market is attempting to look past the noise and is optimistic that we will end up in a negotiated settlement more favorable than the current arrangements,” stated Matthew Haupt, a portfolio manager at Wilson Asset Management in Sydney. However, he added, “the conflicting statements and evolving policies make short-term trading nearly impossible.”

Shares of Apple Inc. surged more than 6% on the Robinhood trading app. Nasdaq 100 futures rose by over 2.3% during early Asian trading on Monday but later moderated their gains. A measure of Asian tech stocks climbed as much as 2.6%, contributing to the uplift of the regional benchmark.

The exemptions announced on Friday by US Customs and Border Protection limited the scope of the tariffs by excluding these items from Trump’s 125% tariffs on China and his baseline 10% global tariffs on nearly all other nations.

US Commerce Secretary Howard Lutnick asserted that this was merely a pause, although the new tech tariffs are expected to be significantly lower than the 125% rate imposed on China. Trump indicated that details regarding a tariff rate for semiconductors would be revealed in the upcoming week.

“I believe this is a ‘net’ reprieve, as the expectation is that electronics will face tariffs lower than the 125% reciprocal on China, allowing companies to create buffers now,” noted Vishnu Varathan, head of economics and strategy at Mizuho Bank. He added that while China may temporarily benefit from this news, it is essential not to get too comfortable as the focus remains on China.

On Monday, equity markets throughout the region responded positively to the latest developments, with the benchmark MSCI Asia Pacific Index increasing by nearly 2%. Stock indices in China and Hong Kong also extended their recent upward trend.

In Taiwan, iPhone assembler Hon Hai Precision Industry Co saw gains of up to 7.8%. Lenovo Group, a PC maker listed in Hong Kong that derives about one-third of its sales from the Americas, surged by 10%.

South Korean component maker LG Innotek Co, which gets the majority of its revenue from Apple, jumped as much as 8.9%. Advantest Corp., a supplier for Nvidia, experienced a 6.3% increase in Tokyo. Meanwhile, China’s Luxshare Precision Industry, which derives approximately 75% of its revenue from Apple, rose 7% before most of the gain was erased.

According to Citigroup analyst Kyna Wong, the Apple supply chain “will likely be the biggest beneficiary,” considering that nearly 90% of iPhone and 80% of iPad assembly capacity resides in China. The Nvidia supply chain is also expected to benefit modestly, although the chip sector continues to navigate uncertainties due to other regulations.

© 2025 Bloomberg

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