Hong Kong stocks advanced nearly 4% on Friday, as a less aggressive US approach to reciprocal tariffs and continued enthusiasm for Chinese tech firms put investors in a buying mood.

The Hang Seng Index surged 3.69%, or 805.96 points, to end at 22,620.33. The Hang Seng China Enterprises Index jumped 4.11%, or 328.77 points, to 8,331.4.

Chinese technology stocks continue to gain momentum as the global success of Deepseek fuels a growing interest in the country's AI capabilities and advancement.

Shares of Tencent (HKG:0700) and Xiaomi (HKG:1810) soared over 7% each on Friday, while those of Alibaba Group (HKG:9988) and Meituan (HKG:3690) gained over 6% each.

"With Beijing doubling down on AI as a national priority, investors are rushing to reprice China's tech and innovation potential. This is no longer just a stimulus-driven bounce - it's a paradigm shift," Stephen Innes, managing partner at SPI Asset Management, was quoted by AP as saying.

"If momentum holds, the Hang Seng Index could finally break out of its multi-year slump, reigniting global appetite for Chinese equities," Innes added.

Meanwhile, fears over the immediate implementation of reciprocal tariffs were alleviated when Howard Lutnick, Trump's nominee to lead the Commerce Department, said a review of the imposition of tariffs on a country-to-country basis may go on until April, Bloomberg reported.