Chinese shares notched up marginal gains on Tuesday whereas those in Hong Kong fell, as the initial euphoria over a Sino-US trade truce involving the reduction and delay of tariffs gave way to caution.

An agreement between US and Chinese officials after weekend talks in Geneva led to a rally in global markets and the US dollar. However, fears that further negotiations could prove a slog still lingered and weighed on investor sentiment.

The Hong Kong market ended lower, with the benchmark Hang Seng Index down 441.19 points, or 1.87 percent, to close at 23,108.27.

The Hang Seng China Enterprises Index dropped 2.02 percent to end at 8,386.21, while the Hang Seng Tech Index slipped 3.26 percent to close at 5,269.66.

China's blue-chip CSI300 Index edged up 0.1 percent, while the Shanghai Composite Index added less than 0.2 percent.

The trade deal exceeded market expectations but investors were confused and worried what changes might come after the "temporary peace", Jefferies analysts said in a client note.

"Institutional investors are becoming more cautious" and odds for policy support from Beijing in the coming months may drop following the unexpectedly positive trade outcome, they said.

Chinese stocks have recovered from a sell-off last month triggered by US President Donald Trump's punitive tariff measures on his so-called Liberation Day on April 2. The CSI300 index is now trading 0.2 percent above that day.

"We have been adding to China over the past months on the view that in the long term the current level of tariffs would be significantly reduced," said Kamil Dimmich, partner and portfolio manager at North of South Capital EM fund.

"Markets have been fairly quick to price in the anticipated 'normalization', so we are no longer in a rush to add but remain happy with our exposures in China. Most likely there will be further ups and downs over the coming weeks and months so there may be better times to add," said Dimmich. (Reuters/Xinhua)