Hong Kong stocks soared nearly 3% to open the week on a positive note after the US and China agreed on a 90-day tariff pause.

The Hang Seng Index surged 3%, or 681.72 points, to end at 23,549.46. The Hang Seng China Enterprises Index also rose 3%, or 250.40 points, to 8,559.23.

Investor confidence surged as the world's two largest economies moved past their earlier impasse and agreed to pause tariffs for 90 days following negotiations in Switzerland over the weekend, according to a Monday joint statement by the US and China.

Reciprocal tariffs previously imposed by the two countries will be slashed by 115% in a deal reached between the nations, one report said, citing US Treasury Secretary Scott Bessent.

As a result, tariffs by the US on China will temporarily come down from 145% to 30%, while Chinese levies on imports from the US will be reduced from 125% to 10%.

Firms with overseas sales making up a large part of their business also soared, with lens maker Sunny Optical (HKG:2382) rising 15% and power tool maker Techtronic Industries (HKG:0669) jumping nearly 7%, South China Morning Post reported.