Tech and Auto Stocks Propel China and Hong Kong Markets Amid Tariff Concerns

China and Hong Kong stocks saw gains, led by the tech and auto sectors, despite new U.S. car tariffs. JPMorgan upgraded its outlook on China, buoying investor sentiment. The Hang Seng Index and CSI300 posted gains, with the chip and auto sectors driving market recovery.

China and Hong Kong stock markets rallied on Thursday, with technology and automotive shares taking the lead in gains. This upward trend occurred despite looming threats of new U.S.-imposed car tariffs, which have sparked concerns among global investors.

The CSI300 index rose by 0.3%, while the Shanghai Composite added 0.2%, recovering from earlier losses. In Hong Kong, the Hang Seng Index climbed 0.4%, bouncing back from a recent three-week low. The Hang Seng Tech Index also saw a positive uptick of 0.3%.

President Trump's announcement of a 25% tariff on imported cars starting next week raised eyebrows, though he hinted at possible tariff concessions for China to facilitate a deal over TikTok. Meanwhile, JPMorgan boosted its year-end target for the MSCI China index to 95, aiding market optimism.

(With inputs from agencies.)