Hong Kong and mainland stocks opened sharply higher on Monday after a heavy selloff last week, buoyed by signs of easing Sino-US trade tensions.

The benchmark Hang Seng Index rose 637 points, or 2.52 percent, to 25,884 while the Hang Seng Tech Index, which represents 30 largest technology companies listed in Hong Kong, rose 3.9 percent to open at 5,984.

The benchmark Shanghai Composite Index opened up 0.67 percent to open at 3,865 while the Shenzhen Component Index opened 1.49 percent higher at 12,877.

US Treasury Secretary Scott Bessent said on Friday he expects to meet this week with Vice Premier He Lifeng in Malaysia to try to forestall an escalation of US tariffs on Chinese goods that President Donald Trump said was unsustainable.

Last week, Hong Kong and mainland stocks posted their biggest weekly drop since April after Trump threatened 100 percent tariffs on Chinese exports in reprisal for Beijing's new export controls on rare earth minerals. (Reuters/Xinhua)