Trump's Tariff Policy Reversal Ignites Hong Kong Stock Market, Consumer Electronics Sector Soars with TCL Electronics Leading the Pack with a 30% Surge

Boosted by multiple positive signals, the consumer electronics sector in Hong Kong stocks collectively strengthened today. As of press time, TCL Electronics (01070.HK) rose 30.28%, Foxconn Interconnect Technology (06088.HK) rose 21.51%, Cowell Electronics (01415.HK) rose 11.26%, AAC Technologies (02018.HK) rose 9.3%, and FIH Mobile (02038.HK) rose 8.33%.

The cooling of risk-off sentiment drove a surge in Asian stock indices.

US President Trump announced on the 9th local time that he has authorized a 90-day tariff suspension for countries that do not take retaliatory actions.

This "sharp turn" in policy alleviated market concerns about a trade war, pushing up Asian stock markets. The Nikkei 225 rose over 8%, the Taiwan Weighted Index rose over 9%, and the Korea Composite Index rose over 5%.

TCL Electronics and Foxconn Interconnect Technology led the gains.

As mentioned in previous articles, Trump's tariff policy once sparked market concerns, which also weighed on the performance of consumer electronics-related stocks.

Taking TCL Electronics as an example, the company fell more than 17% from April 7 to 9, and then surged today due to positive market stimuli.

Note: TCL Electronics' performance

TCL Electronics announced yesterday the launch of a 2025 equity incentive plan with performance conditions, granting approximately 91.498 million shares to 860 core employees, with the assessment target being a stepwise increase in non-GAAP net profit from 2025 to 2027 compared to 2024 (1.61 billion Hong Kong dollars).

The rise of Foxconn Interconnect Technology is related to an oversold rebound. Previously, due to tariff concerns, the company fell more than 24% from April 7 to 9, and today it experienced a strong rebound.

Note: Foxconn Interconnect Technology's performance

As an Apple supply chain company and a global leader in communication equipment, its precision component business covers smartphones, wearable devices, and other fields, with a technology focus on 5G and IoT.

In addition, Cowell Electronics and AAC Technologies, also core suppliers of Apple, benefited from the easing of cost pressures in the industry chain under the tariff suspension policy.

Institutions stated that the global layout of consumer electronics companies is expected to hedge risks.

Institutions pointed out that in the short term, the "tug-of-war" of Trump's tariff policy will still disturb the market, but the global capacity layout of Chinese consumer electronics companies (such as TCL Electronics' Southeast Asia base and Foxconn Interconnect Technology's European expansion) and technological iterations (solid-state battery, sodium-ion battery) are expected to hedge risks.