Asian stocks surged and the US dollar meandered on Monday as signs of easing trade tensions between China and the United States buoyed risk appetite, in a strong start to a week that will be headlined by central bank meetings and megacap earnings.

Hong Kong's Hang Seng Index gained 335 points, or 1.3 percent, to open at 26,495.

Mainland markets also opened higher on Monday, with the benchmark Shanghai Composite Index up 0.5 percent to open at 3,969. The Shenzhen Component Index opened 1.2 percent higher at 13,448.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, was up 1.8 percent to open at 3,227.

Top Chinese and US economic officials hashed out on Sunday the framework of a trade deal for President Xi Jinping and US President Donald Trump to decide on later this week in their eagerly anticipated meeting in South Korea.

A trade deal would pause steeper American tariffs and Chinese rare earths export controls, helping soothe investor nerves that were frayed due to escalating trade tensions between the world's top two economies.

South Korea's Kospi and Japan's Nikkei added more than 2 percent each to record highs. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.3 percent.

"Investors will want to see confirmation that the trade truce holds and that China's stimulus and reform signals translate into tangible growth momentum," said Charu Chanana, chief investment strategist at Saxo.

The Australian dollar, often seen as a risk and China proxy, climbed 0.4 percent to US$0.654, near a two-week high.

Safe-haven gold eased 1 percent on trade deal hopes, while US Treasuries fell, leaving the 10-year bond yield up 2.9 basis points. Commodities, including soybeans, wheat and corn surged on trade deal prospects.

Investor focus this week will also be on central bank meetings in Japan, Canada, Europe and the US.

The US Federal Reserve is widely expected to cut interest rates by 25 basis points after data showed US consumer prices increased slightly less than expected in September, but the government shutdown and its impact on data remain a concern.

The US dollar was little changed at 152.93 yen, hovering near a two-week high. The euro last bought US$1.1635. The US dollar index eased 0.1 percent at 98.824 in early trading.

The European Central Bank and the Bank of Japan are both broadly expected to hold rates steady later this week.

Megacaps Microsoft, Apple, Alphabet, Amazon and Meta Platforms all due to report results this week. (Xinhua/Reuters)