Shares in Hong Kong rallied more than three percent in the morning session, in line with an advance across Asian markets after Donald Trump and the leaders of Mexico and Canada reached deals to delay US tariffs for a month.

The Hang Seng Index rallied 3.11 percent in the morning session, or 629 points, to 20,846.

Markets were sent tumbling on Monday after the US president at the weekend signed off 25 percent duties against Mexico and Canada, fanning concerns for the stuttering global economy.

However, investors were given a much-needed shot in the arm after the Trump administration said it had struck deals with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum on immigration and fentanyl, and would postpone the measures.

Trump added he would hold talks with Beijing "probably in the next 24 hours" to avoid new 10 percent tariffs on Chinese imports.

Chinese markets remain closed due to the Lunar New Year holiday. (AFP)