China, HK stocks edge higher ahead of tariff deadline
At market close, the Shanghai Composite index rose 0.3 percent to 3,647.55, the highest such close since Dec 16, 2021. The blue-chip CSI300 index was up 0.4 percent.
Market participants widely expect another extension of the August 12 trade truce deadline following earlier talks in Stockholm.
Analysts at Caitong Securities said in a note that the trade negotiations will likely result in an extension of reciprocal tariffs, and until US President Donald Trump's potential visit to China, the impact of US-China relations on A-shares could remain limited.
However, fresh data showed factory-gate prices falling more than forecast as deflationary pressures persist across the Chinese economy, weighing on the sentiment.
Leading gains onshore on Monday, the liquor sector jumped 2.5 percent, and AI-related stocks added 1.8 percent.
Shares of lithium maker Tianqi and Ganfeng surged to near the 10 percent daily trading limits, after battery giant Contemporary Amperex Technology (CATL) said it had suspended production at a major lithium mine.
In Hong Kong, the benchmark Hang Seng Index was up 0.2 percent at 24,906.81.
The Tech index was flat, while Hang Seng Automobile Index rallied 1.9 percent.
Investors are also awaiting earnings reports from market heavyweights later this week, including Tencent Meituan, JD.com and Alibaba.
Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.30 percent while Japan's Nikkei index was up 1.9 percent.
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