China’s blue-chip CSI300 Index advanced 2.8% by the lunch break, while the Shanghai Composite Index gained 1.9%

Hong Kong benchmark Hang Seng jumped 2.8%. Hong Kong-listed tech giants surged 4.4%

The two-week ceasefire agreement has sparked a relief rally across major Asian stocks and currencies, thanks to the easing geopolitical tensions.

Gold and semiconductors sectors led the rally, up more than 6% each, while energy stocks dropped 2.8%.

In Hong Kong, index heavyweight Meituan 3690 soared 9.9% on easing regulatory risks. Semiconductors and real estate companies also outperformed.

Today’s rally looks “broader than pure geopolitical relief trade,” said Charu Chanana, chief investment strategist at Saxo, citing the jump in Hong Kong property stocks as a sign that investors are reacting to the improving demand.

“The rally can stretch further near term,” she added, especially if lower oil, yuan strength and improving Hong Kong property sentiment keep reinforcing each other.

On policy front, markets believe Chinese policymakers will maintain a wait-and-see approach unless external shocks to the economy increase significantly.

Some investors expect the rebound in China’s shares to be relatively mild, given they haven’t experienced a meaningful selloff amid the Iran war.

“As a result, the scope for a rebound, if and when geopolitical risks ease, appears more limited,” Yan Wang, chief EM and China Strategist at Alpine Macro, said in a note.

The smaller Shenzhen index was up 3.45%, start-up board ChiNext Composite index was higher by 4.81% and Shanghai’s tech-focused STAR50 index was up 5.05%​.

MSCI’s Asia ex-Japan stock index firmed by 4.96%, while Nikkei index was up 5.27%.