(Bloomberg) -- Chinese stocks had their best week in more than three months as sentiment improved following signs of easing external tensions and a recovery in domestic demand.

The Hang Seng China Enterprises Index climbed more than 3% in the five sessions through Friday, capping its best week since October 4.

After suffering their worst start to any year since 2016, shares got a boost this week from news that US President-elect Donald Trump’s team is considering taking a gradual approach to raising tariffs. China’s stronger-than-expected economic growth in the December quarter also raised hopes that consumption is improving on the back of the government’s stimulus push.

All eyes are now on Trump’s inauguration next week for any announcements on US tariffs. Markets are bracing for volatility depending on the speed and scale of his executive orders.