Global stock markets rallied on Monday after the US government temporarily excluded smartphones, laptops and other popular consumer electronics from sweeping new tariffs on Chinese imports.

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The move offered a reprieve for major tech companies such as Apple, which rely heavily on Chinese factories to manufacture their products, and raised hopes among investors that the most damaging parts of Donald Trump’s trade agenda might still be avoided.

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Hong Kong’s Hang Seng index jumped 2.1%, Japan’s Nikkei rose 1.2%, and the wider Topix added 0.9%. In Europe, London’s FTSE 100 climbed 1.4% while the pan-European Stoxx 600 rose 1.6%. US stock futures also moved higher, with the S&P 500 up 1.3% and the tech-heavy Nasdaq 100 rising 1.6% in morning trading.

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Despite the rally, US officials have insisted that the tariff carve-out is not a sign of a broader shift. The 145% tariff rate, which applies to a wide range of Chinese goods, is still expected to hit other sectors, including semiconductors.

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“NOBODY is getting ‘off the hook’ for the unfair Trade Balances, and Non Monetary Tariff Barriers,” Trump wrote on his Truth Social platform, singling out China as the worst offender. But speaking to reporters later aboard Air Force One, he suggested the administration would show “flexibility” on some products and hinted that companies would be consulted about how the tariffs are implemented.

When asked about the planned tariff rate for semiconductors, Trump said he would announce it “over the next week”.

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The mixed messaging has left investors trying to read between the line with analysts hoping the latest developments could be a first step towards some form of deal with China.

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The rally extended into currency and bond markets too. The US dollar fell 0.9% against a basket of major currencies, extending losses after hitting a three-year low last Friday. The yield on the 10-year US Treasury slipped to 4.46%—still above its level before Trump first threatened the new tariffs, but slightly down on the day.

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In China, the mood was also cautiously positive. The CSI 300 index rose 0.5% following a strong March export report, which showed shipments jumping 12.4% year-on-year as firms raced to send goods abroad before tariffs kicked in. It was the biggest monthly export rise since October. Imports fell 4.3% over the same period, a milder decline than earlier in the year.

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‎For now, the exemption on tech goods has calmed markets rattled by escalating trade tensions—but with more tariff announcements expected in the coming days, volatility is likely to return.