[ET Net News Agency, 23 February 2026] A US federal court has ruled US President Trump's
large-scale tariff measures as unconstitutional. While Trump has already proposed
alternative policies, the ruling has nevertheless improved sentiment in Hong Kong
equities. Even with Stock Connect yet to open, main board turnover had already reached HKD
106.4 billion by midday. Leading tech stocks rebounded sharply, while export and precious
metals sectors also strengthened. The Hang Seng Index climbed 604 points (2.3%) by midday
to 27,017, staging a breakout above the 10-day (approx. 26,866) and 20-day (approx.
26,978) moving averages, and regaining the 27,000 mark. The Hang Seng China Enterprises
Index rose 223 points (2.5%) to 9,183, and the Hang Seng Tech Index gained 173 points
(3.3%) to 5,384.

"Nip Chun Pong: High chance for strong A-share opening in year of the horse"

On Friday (the 20th), the US Supreme Court ruled by a 6-3 majority that US President
Trump's invocation of the International Emergency Economic Powers Act to unilaterally
impose sweeping tariffs without explicit congressional approval exceeded his authority and
was therefore invalid. Analysts expect this ruling to spark significant dispute about
tariff refunds, with some academics estimating the sums involved could reach USD 175
billion (about HKD 1.365 trillion). Following the news, US stocks rose, although gains
were mild; the standout performers were in transportation, logistics, and retail. European
markets also rallied, rising between 0.6% and 1.4%, led by the export-focused German
market.
Trump denounced the court's decision in a White House press conference, calling the
ruling "deeply disappointing." He announced that he would sign an executive order under
Section 122 of the Trade Act, adding a further 10% tariff on global goods in addition to
existing rates, and just a day later raising this to 15%.
After closing down nearly 300 points last Friday in the worst year of the horse opening
in six years, the HSI staged a stunning turnaround today. Opening 385 points higher, its
rally quickly gathered pace, at one stage soaring by more than 700 points and vaulting
back above 27,000. Nip Chun Pong, the Chief Strategist at Solo Securities, told ET Net
News Agency that today's rally was mainly driven by the US Supreme Court decision. Even
with Trump's alternative tariff plan, most new rates would be below the previous matching
rates.
However, Nip stressed that the key for Hong Kong stocks is whether the HSI can hold
above 27,000. He noted that on 28 January, the HSI surged around 700 points and pushed
above 28,000 on the 29th, but then immediately fell back sharply over the next two days.
This means investors should watch closely over the next two days to see if the HSI can
build a foothold above 27,000. With A-shares opening tomorrow for their Year of the Horse
debut, their performance will be crucial. Today's positive tariff news should support a
strong A-share start, but the extent of the rally remains unclear. If the gains are
modest, the HSI may still see some pullback, though support is expected near 26,500, and
the near-term range could be 26,500 to 27,000.

"Exporters and Apple suppliers surge, Techtronic rises towards four-year high"

The overturning of Trump's tariffs led to broad gains in exporters and Apple-concept
stocks. Among them, Techtronic Ind (00669), together with iPhone supply chain stocks Sunny
Optical (02382) and AAC Tech (02018), all rose around 5%, while Q Tech (01478) jumped as
much as 8%. Nip noted that the roll-back of tariffs benefits both exporters and Apple
suppliers. Techtronic, which has a high proportion of US exports, rose towards a four-year
high. Even at current levels, Techtronic's P/E ratio is just over 20 times. The group's
interim profit for last year was up 14% year-on-year. Furthermore, the US housing market
has shown signs of recovery since the second half of last year, with rising transaction
volumes potentially boosting demand for Techtronic's home improvement products. The tariff
reduction is an additional tailwind for the group's outlook. However, with the share price
now approaching levels last seen in March 2022 (near HKD 140), Nip expects further upside
may be limited.
Sunny Optical, a leading Apple supplier, also outperformed today. According to Nip,
Apple concept stocks have been relatively weak recently, especially after Apple announced
its SIRI upgrade would be postponed, which further weighed on these names; Sunny Optical
had slumped to a ten-month low. Still, with Apple set to hold a new product launch from
2-4 March, likely unveiling five new electronic devices, investor interest is reviving.
The sector's gains today are driven by both tariff relief and anticipation for new Apple
products, which should provide ongoing support to suppliers' share prices ahead of the
event. Nip considers today's rise in Sunny Optical to be a catch-up move. The key now is
whether it can reclaim and hold above HKD 60 in the short term. If Apple's new launches
are well received next week, Sunny Optical could challenge HKD 65 going forward.