When magnesium oxide reacts with hydrochloric acid it forms:
in water
Magnesium oxide is an insoluble base, the basic oxide will react with a dilute acid to produce a soluble salt (MgCl2) and water (H2O).
MgO+2HCl→MgCl2+H2O
This is a neutralization reaction, as the acidity of HCl is been neutralized by MgO.