Hong Kong equities opened May on a strong note on Friday, buoyed by signals of potential Sino-US trade negotiations and investor confidence reinforced by robust earnings from global tech giants.

The benchmark Hang Seng Index climbed 1.74 percent, or 385.27 points, to close at 22,504.68, marking its highest level in four trading weeks. The Hang Seng Tech Index, tracking 30 major tech firms, jumped 3.08 percent.

Expectations of talks between the world’s two largest economies are the main driver of Hong Kong stocks’ rebound, said Alvin Ngan, an equity strategist at Zhongtai Financial International.

Senior US officials have recently reached out through relevant channels multiple times, expressing a desire to start a dialogue with China on tariff issues, a Ministry of Commerce spokesperson said on Friday.

This marks Beijing’s first indication that it may be open to potential negotiations since Washington unilaterally initiated the tariff and trade wars.

The stock price of electric vehicle maker XPeng surged around 6.7 percent to HK$77.7 ($10.02) after reporting a 273 percent year-on-year jump in April deliveries to 35,045 units. Consumer electronics and smart EV producer Xiaomi rose 6.3 percent to HK$53.1 on similarly strong EV delivery figures.

Horizon Robotics, a supplier of automotive chips, soared 14.5 percent to HK$7.5 following its newly secured partnerships with industry leaders worldwide such as Japan’s Denso and Bosch in Germany. Investor sentiment was also lifted by news that Li Auto — a key player in China’s EV market — has adopted its driver-assistance solutions.

Chinese biotech heavyweight WuXi AppTec surged more than 7 percent to HK$64.4, while its subsidiary WuXi Biologics gained 5.7 percent to HK$24.1. Meanwhile, bourse operator Hong Kong Exchanges and Clearing advanced about 3 percent to HK$351.2.

Despite the market’s overall strength, nine index constituents faced declines. HSBC Holdings edged down 1 percent to HK$86.2 after the financial services institution announced on Thursday that Chairman Mark Tucker plans to retire by the end of the year.

Ngan said the global tech titans’ resilient quarterly profits and their commitments to investing in artificial intelligence serve as another key driver behind the surge in Hong Kong-listed AI and related tech stocks.

Facebook parent Meta and Microsoft both reported year-on-year revenue growth for the first quarter on Wednesday, and announced increased investments in AI infrastructure. Apple also posted a revenue increase later.

“AI remains the dominant theme across the stock markets of both the US and China,” Ngan added.

Additionally, consumer stocks, such as sportswear company Li Ning and dining chain Haidilao, saw price increases. This can be attributed to the central government’s consumption-stimulus policies and optimism around domestic spending during the Labor Day holiday from Thursday to Monday, said Denise Cheung Pui-yee, a committee member of the Hong Kong Institute of Financial Analysts and Professional Commentators.