By Rebecca Feng

Chinese chip, electronics and electric-vehicle stocks rallied Tuesday, after President Trump didn't impose fresh tariffs on China in his first hours in office.

He had previously pledged to impose tariffs of up to 60% on imports from the country. However, Trump also said Monday that Beijing could be compelled with tariffs to approve a deal to sell TikTok and that the U.S. should get half of the social-media app.

-- In Hong Kong, the Hang Seng Tech Index jumped 2.1%, while the broader Hang Seng Index gained 0.9%.

-- Electronics and semiconductor stocks led the rally. Sunny Optical, which makes smartphone lenses and camera modules, jumped 7.3% while SMIC, China's largest chip maker, gained 6.3%.

-- EV stocks also climbed. Hong Kong-listed shares of XPeng and Li Auto both surged more than 5%. BYD stock gained 1.7%.

-- Shares in mainland China were subdued. The CSI 300 index, which tracks shares in both Shanghai and Shenzhen, climbed 0.1%. The Shanghai Composite edged lower.

Any relief rally is likely to be short-lived, said Chetan Seth, Asia-Pacific equity strategist at Nomura.

"If the 2018-2019 U.S.-China trade war is a guide, we believe investors would need to brace for bouts of volatility and regular whipsaws driven by news reports, market chatter and social media posts regarding Trump's policies especially related to tariffs and trade policy," Seth wrote in a note to clients.

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(END) Dow Jones Newswires

January 21, 2025 05:34 ET (10:34 GMT)

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