Why Alibaba, JD, and Huya Stocks Surged on Tuesday

Stocks of some of China's most popular companies continued to rally on Tuesday, capping several days of increases. Many of the nation's largest population centers have continued to struggle with COVID-19, resulting in economic uncertainty and government regulatory crackdowns. During the past several days, however, there have been signs that the pandemic may be easing, resulting in the lifting of some government restrictions and providing a boost to China's battered stock market.

Shares of Huya (NYSE: HUYA) gained as much as 11.8%, JD.com (NASDAQ: JD) climbed as much as 7.5%, and Alibaba (NYSE: BABA) surged as much as 6.3%. As of 11:59 a.m. ET, the trio were still trading higher, up 9.7%, 6.5%, and 4.6%, respectively.

Authorities in Shanghai, the country's largest city, said they will take a major step forward toward easing pandemic-related restrictions beginning this week, after a steady decline in new infections. The city has been on a government-mandated lockdown for two months, the result of the country's "zero-COVID" policy. This came as the number of new COVID-19 cases in China fell below triple digits for the first time in three months. There were just 29 new cases in Shanghai on Monday, a remarkable decline from roughly 20,000 new infections per day early last month.

Source Fool.com