Hong Kong’s benchmark Hang Seng Index added 1.7% to 22,493.96 as of the midday trading break, the highest since April 3.

The gain followed the 4.3% decline in April, the worst month for the benchmark since November 2024, as US President Donald Trump’s “reciprocal tariff” triggered a global markets rout.

The Hang Seng China Enterprises Index rose 1.8% to 8,224.45 – also a one-month high.

The mainland markets are closed till next Tuesday for the Golden Week holiday.

China’s commerce ministry said Beijing is “evaluating” an offer from Washington for talks over Trump’s crippling tariffs, signalling a potential de-escalation in the trade war that has roiled global markets.

“Investors have taken comfort from signs of potential de-escalation between the US and China and the opening of trade talks with Japan and others,” analyst at Citi said.

EV makers are among the top performers in Hong Kong, driven by the strong April delivery figures.

Xpeng surged 7.6% to a one-week high after reporting a 273% year-on-year surge in smart EV deliveries last month.

Peer Li Auto climbed 4.4% and BYD gained 2%, supported by sales increases.

Tech stocks advanced, with the Hang Seng Tech Index adding 3.3%.

Alibaba strengthened more than 4% and Tencent added 2.4%. Both stocks were near their one-month highs.

The Chinese yuan strengthened in offshore trading to as much as 7.2524, its strongest level in a month.