Tencent Music Entertainment Group (TME) stock is soaring 5.07% in pre-market trading on Monday, as Chinese ADRs and ETFs extend their gains following the US decision to suspend tariffs on a range of consumer electronics. This move has sparked a broad rally among Chinese technology stocks listed in the United States.

The temporary pause on duties affects various products, including smartphones, laptops, and memory chips, many of which are manufactured in China. While the White House stated that this exemption is only temporary and separate tariffs might be introduced later, investors are viewing this as a positive sign for US-China trade relations. The news has particularly boosted sentiment towards Chinese tech companies, with several major players seeing significant pre-market gains.

Although Tencent Music, primarily a music streaming service, is not directly impacted by the electronics tariffs, it is benefiting from the overall positive sentiment towards Chinese ADRs. Investors appear to be optimistic about the potential for improved US-China relations, which could have broader implications for Chinese companies operating in or trading with the United States. As trade tensions ease, at least temporarily, Chinese tech stocks like Tencent Music may continue to see increased investor interest and potential growth opportunities.