Hong Kong, Shanghai Open The Week With Gains

Hong Kong and mainland stocks kicked off the week with gains, extending last week's rally as reports said China and the US were closing in on a deal to end their trade war.

The Hang Seng Index in Hong Kong added 0.5 percent, to 28,959.

On the mainland, the Shanghai Composite Index jumped 1.1 percent, to 3,027 and the Shenzhen Composite Index rallied 2.2 percent, to 1,599.

Sydney rose 0.4 percent and Singapore 0.8 percent, while Wellington added 0.7 percent and Manila 0.6 percent.

However, Seoul edged down 0.2 percent while Taipei slipped 0.4 percent.

Tai Hui, Asia-Pacific chief market strategist at JP Morgan Asset Management, said that while there were a number of hurdles to a final agreement such as on intellectual property rights, traders were broadly confident.

"Investors are fully aware of these long-term challenges, but a more sustained ceasefire on tariffs will help to reduce business uncertainty. This could provide a much-needed lift to business sentiment and improve growth momentum entering the summer," he said.

On currency markets the US dollar extended gains against the safe-haven yen as dealers became more confident, while the greenback was down against most high-yielding units including the Australian dollar, South African rand and Thai baht.

The yuan was holding around eight-month highs. (AFP)