Mainland stocks rose to one-month highs on Monday while Hong Kong shares also gained, recouping losses recorded since the outbreak of the Iran war on February 28, as signs of China's economic resilience ⁠and fresh market-friendly policies lifted sentiment.

The benchmark Hang Seng Index ended up 200 points, or 0.77 percent, at 26,361.

The China enterprises index was up 54 points, or 0.61 percent, at 8,899 while the tech index was almost 23 points, or 0.46 percent, higher at 5,065.

Up north, the Shanghai Composite Index closed up 30 points, or 0.8 percent, near the day's peak of 4,082 on turnover of 1.08 trillion yuan.

It was a one-month high for the index.

The Shenzhen Component Index hit a more than four-year high, closing up 81 points, or 0.6 percent, at 14,966 on turnover of 1.49 trillion yuan while the ChiNext Index closed down less than one point at 3,677 on turnover of 698.5 billion yuan.

Regional markets also rebounded, but with uncertainty lingering around US-Iran talks, some caution that markets may be too complacent.

In Tokyo, the benchmark Nikkei 225 Index rose almost 349 points, or 0.6 percent, to close at 58,824 compared with its record intraday level of 59,688 touched on Thursday.

The broader Topix climbed 16 points, or 0.43 percent, to 3,777.

In Seoul, the benchmark Kospi closed up 27 points, or 0.44 percent, at 6,219, after rising as much as 1.4 percent earlier in the session to hit the highest level since late February.

Investors remain optimistic towards a US-Iran ⁠deal, even as concerns grew on Monday that the ceasefire ⁠might not hold after the ⁠US said it had seized an Iranian cargo ship that tried to run its blockade and Iran vowed to retaliate.

"Because ⁠the market has become more confident in resolution, developments that are large enough to shake that confidence are likely also to have meaningful market impact," Goldman Sachs said, cautioning against downside tail risks.

Orient Securities pointed to ⁠investment opportunities in China's manufacturing sector.

"In the backdrop of unprecedented demand for energy security, China's globally competitive new energy sector is undoubtedly the core investment theme," the brokerage said in a report.

Reflecting economic resilience, China on Monday left benchmark loan prime rates unchanged for the 11th consecutive month in April, following solid economic growth at the start of the year.

China's securities regulator on Friday broadened the types of strategic investors in companies' additional share sales, revamped fund managers' incentive system and cracked down on illegal share sales by major shareholders.

Technology shares, including satellite, electronics and chipmaking, led gains in the mainland on Monday.

Artificial Intelligence stocks rose after news that Chinese AI startup DeepSeek is in talks with investors to raise at least US$300 million at a valuation ⁠of US$10 billion.

Robotics stocks rose after a half-marathon race on Sunday highlighted the sector's rapid technical advances. (Reuters/Xinhua)


Edited by Tony Sabine