The Hang Seng Index surged 3.7% by the lunch break, on track for its biggest one-day gain since March 1. The gauge had touched six-month lows this week on China growth concerns and geopolitical tensions.

China’s blue-chip CSI300 Index rose 1.3%, while the Shanghai Composite Index rose 0.8%.

Asian stocks surged on Friday after the US Senate passed bipartisan legislation that lifts the government’s US$31.4 trillion debt ceiling. The measure now awaits President Joe Biden’s signature before it can turn into law.

Appetite for risky assets was also fuelled by bets the Federal Reserve might stand still on interest rates in its next meeting.

Nuno Fernandes, equity portfolio manager at for GW&K’s Emerging Wealth Equity Strategy, said he remains optimistic about China’s recovery, despite recent market volatility.

“Chinese consumers are spending on wellness, on life experiences, on travel, on dining-out… so we’re encouraged with the results. We are holding ground with our position,” said Fernandes, whose holdings include Tencent Holdings Alibaba Group, Trip.com, and Baidu.

Tech shares listed in Hong Kong surged 4.9%.

In China, the northbound trading flow was on track to reach a nearly 4-month high, at 8 billion yuan (US$1.16 billion) in early Asia trades.

Real estate and consumer discretionary stocks rebounded from early lows, up 3.3% and 2.5%, respectively.