Regional equities mostly rallied on Monday on hopes that the US government shutdown could be nearing an end after reports said US lawmakers had reached a deal to break the record-breaking 40-day impasse and as the trade truce between the world's two biggest economies went into effect.

In Hong Kong, the benchmark Hang Seng Index ended the day up 407 points, or 1.55 percent, at 26,649.

The Hang Seng China Enterprises Index rose 1.9 percent to 9,443 while the Hang Seng Tech Index rose 1.34 percent to 5,915.

On the mainland, the benchmark Shanghai Composite Index rose 0.53 percent to 4,018 while the Shenzhen Component Index was 0.18 percent higher at 13,427 and the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 0.92 percent to 3,178.

The combined turnover of the Shanghai and Shenzhen main indexes was 2.17 trillion yuan, up from nearly two trillion yuan on Friday.

The gains came as defensive sectors including liquor and consumer staples jumped on rising consumer prices.

They also came as the trade truce went into effect, with both Beijing and Washington announcing a one-year suspension of special port fees for ships owned or operated by enterprises, organisations and individuals on the other side.

The prospect of a resumption of operations in the world's biggest economy with the end of the ongoing government shutdown helped temper lingering worries about extended tech valuations amid talk of an AI bubble following this year's eye-watering rally.

Leading the gains, the CSI Liquor Index rallied more than 5 percent to the highest in nearly two months. The consumer staple sector jumped 3.4 percent in the biggest single-day gain since April. (Agencies/Xinhua)