[SHANGHAI] Chinese and Hong Kong stocks opened more than two per cent higher on Monday after Washington and Beijing announced a truce in their escalating trade war.

The benchmark Shanghai Composite Index surged 2.24 per cent, or 58.04 points, to 2,646.23, while the Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 2.55 per cent, or 34.15 points, to 1,371.89.

And Hong Kong climbed 2.02 per cent, or 535.64 points, to 27,042.39.

AFP