China’s economic growth could deteriorate sharply this year as the country engages in a bitter trade war with the United States, Barclays analysts said in a note, although Beijing is likely to increase its stimulus measures. 

Asian stocks rose sharply on Monday, with Hong Kong’s Hang Seng index up the most on gains in technology after U.S. authorities signaled that electronics would be temporarily exempt from steep trade tariffs on China. 

Oil prices edged higher on Monday after U.S. exclusions on some tariffs and Chinese data showing a sharp rebound in crude imports in March, but gains were capped by concerns that the trade war between the United States and China could weaken global economic growth and dent fuel demand.

The U.S. dollar weakened Monday, with uncertainty surrounding the Trump administration’s trade policies shaking investor confidence in the world’s reserve currency.

The U.K. economy expanded by 0.5% in February compared to the previous month, official data showed on Friday, rebounding from a modest decline in January. Economists had forecast a smaller increase of 0.1%.

Beijing on Friday increased its tariffs on U.S. imports to 125%, hitting back against U.S. President Donald Trump’s decision to hike duties on Chinese goods to 145%, raising the stakes in a trade war that threatens to up-end global supply chains.