Asian shares closed higher on Monday, taking cues from Wall Street's advance following the release of strong employment data for the month of June. Meanwhile, investors continued to keep an eye on trade after the U.S. and China exchanged tariffs last week.
In Japan, the Nikkei 225 gained 264.04 points, or 1.2%, to 22,052.18, buoyed by broad-based gains across sectors, including banking, electric appliances and metal products, with pharmaceuticals leading gains on the index.
Against the yen, the U.S. dollar edged up to 110.50.
In Hong Kong, the Hang Seng zoomed 372.88 points, or 1.3%, to 28,688.50, with the services and materials sectors leading the gains before the market close.
In corporate news, smartphone maker Xiaomi debuted for trade in Hong Kong on Monday after the company priced its initial public offering at 17 Hong Kong dollars ($2.17 U.S.) per share, the low end of an indicative range. Xiaomi said last month that it did not have a time frame for its share offering on the mainland.
Korean bourses saw slimmer gains, as tech stocks climbed while manufacturers declined. Index heavyweight Samsung Electronics rose 1.6% on the day and steelmaker Posco dropped 2.4%
Australian markets added strength, amid gains in banks and resources plays. Mining major BHP was up 2.1%, with banks also ending the session higher.
CHINA
In Shanghai, the CSI 300 gained 94.06 points, or 2.8%, to 3,459.18
The improvement in sentiment in the session came after Friday's developments on the trade front when U.S. tariffs on $34 billion in Chinese goods took effect, ramping up the country's ongoing trade spat with China.
China followed up by promptly imposing duties of its own on the same value of U.S. products. China's Ministry of Commerce said it had no choice but to respond to the U.S. after the latter "launched the largest trade war in economic history."
The Chinese currency was firmer on Monday amid, with the on-shore yuan trading at 6.6203, around 0.4% firmer from Friday's close.
In other markets
In Singapore, the Straits Times Index recovered 37 points, or 1.2%, to 3,228.82
In Taiwan, the Taiex index hiked 111.71 points, or 1.1%, to 10,720.28
In Korea, the Kospi index was positive 12.93 points, or 0.6%, to 2,285.80
In New Zealand, the NZX 50 lost 22.38 points, or 0.3%, to 9,061.65
In Australia, the ASX 200 added 13.75 points, or 0.2%, to 6,286.04
