The Hang Seng Index gained 165 points, or 0.67 percent, to open at 24,991 points on Monday.

Mainland stocks opened higher, with the benchmark Shanghai Composite Index up 0.24 percent to open at 3,542 points, and the Shenzhen Component Index up 0.22 percent at 10,937 points.

Meanwhile, China has kept benchmark lending rates unchanged on Monday, as forecast, after it reported slightly better-than-expected second-quarter economic data.

The one-year loan prime rate (LPR) was kept at 3 percent, while the five-year LPR was unchanged at 3.5 percent.

Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages.

China's economy slowed less than expected in the second quarter in a show of resilience against US tariffs. (Agencies)