Hong Kong stocks kicked off the week higher as investors awaited signals ahead of the Aug. 12 expiry of the US-China tariff truce.

The Hang Seng Index rose 225.64 points, or 0.9%, to close Monday's session at 24,733.45, while the Hang Seng China Enterprises Index gained 89.06 points, or 1%, to end at 8,893.48.

US Trade Representative Jamieson Greer signaled cautious optimism over rare earth trade discussions with China, saying efforts were underway to restore magnet exports to pre-restriction levels.

"We're focused on making sure that magnets from China to the United States and the adjacent supply chain can flow as freely as they did before the controls," Greer said in an interview on CBS's Face the Nation, as reported by Bloomberg. "I would say we're about halfway there."

His remarks come four months after Beijing imposed curbs on rare earth magnet exports in retaliation for US tariff threats.

Greer also stated that President Donald Trump would decide whether to extend the trade truce before the deadline.

In corporate news, semiconductor stocks gained.

Hua Hong Semiconductor (HKG:1347) closed nearly 9% higher, while Semiconductor Manufacturing International Corporation (SMIC) (HKG:0981) climbed 3%.