Stocks rallied on Monday after Chinese and US officials made "substantial progress" at trade talks in Geneva and slashed their tit-for-tat tariffs for 90 days, fuelling hopes the two sides will pull back from a standoff that has rattled global markets.

Investors have been on a rollercoaster ride since US President Donald Trump unveiled eye-watering tolls on trading partners on April 2, with the heftiest saved for Beijing.

On Monday the two countries said they would slash their levies to cool tensions and give officials time to resolve their differences.

Hong Kong led Asian markets higher, jumping nearly three percent, while Shanghai also enjoyed healthy buying interest.

The benchmark Hang Seng Index was up 2.98 percent to close at 23,549. (AFP)