Hong Kong stocks fell in the morning session on Monday as traders fret over a spike in virus cases in the city that has forced the government to impose fresh containment measures.

The Hang Seng Index slipped 0.5 percent, or 134 points, to 26,760.

Across the border, the blue-chip index scaled a near 5-1/2-year high, led by gains in traditional industries, as upbeat factory activity data showed continued recovery in the world's second-largest economy amid the coronavirus outbreak.

The CSI300 index rose 1.3 percent to 5,045, its highest since June 18, 2015, while the Shanghai Composite Index gained 1.1 percent to 3,444.

Leading the gains, the Shanghai SE50 index, which tracks the 50 most representative traditional stocks on the Shanghai Stock Exchange, climbed as much as 2 percent to its highest since February 2008.

China's factory activity expanded at the fastest pace in more than three years in November, while growth in the services sector also hit a multi-year high, as the country's economic recovery from the coronavirus stepped up. (AFP/Reuters)