Asian stocks rallied on Monday following Sunday's big announcement regarding the upcoming licenses that U.S. firms will receive so they can work with Huawei again.
According to CNN, the Shanghai Composite edged up 0.7 percent, the Hong Kong Hang Seng index added 1.3 percent, and the South Korean Kospi also gained 1.3 percent. Aside from indexes edging up, the SK Hynix also soared by two percent, and tech giant Samsung gained 1.8 percent.
Japanese markets have yet to show a reaction to the big news as they are closed for a national holiday.
The rallying of Asian markets came a day after U.S. Commerce Secretary Wilbur Ross said during an interview with Bloomberg TV that the approval of licenses for American companies to restart or kick off business deals with Huawei "will be forthcoming very shortly."
The news came amid ongoing efforts between China and the United States to ink the "phase one" trade deal that has long been overdue. Ross revealed during the same interview that there were 260 requests for collaborative licenses submitted to his office.
Ross added that Beijing and Washington are "very far along with phase one." It remains to be seen how the Huawei reprieve will affect trade tensions between two of the world's biggest economies.
While Ross did have some details to spill about "phase one" of the China-U.S. trade deal, he did not deny or confirm whether U.S. President Donald Trump will lift the tariffs that should come into effect next month, CNBC reported.
Overall, industry experts noted that Ross appeared to be optimistic about the Huawei reprieve. Some are expecting to see more progress after the White House official said discussions about the Chinese tech crown jewel are currently "in good shape."
The Trump administration decided to blacklist Huawei and several other Chinese firms in May, claiming that the said firms in question were a national security threat to the United States.
With Ross' confirmation about the upcoming licenses, industry analysts predicted that Huawei phones may get Google apps and the Android operating system again.
The two tech companies have been working together for the past years but the blanket ban forced Google to disallow Huawei's use of its apps and OS. Industry experts believe that the licenses Ross mentioned would be more permanent.
If Google gets a license to work with Huawei again long-term, upcoming phones from the Chinese tech equipment and smartphone giant will feature Android as well as other Google apps without license expirations.
The official list of U.S. companies to be granted with licenses has yet to be revealed.
