Hong Kong stocks rebounded Tuesday as investors bet on easing Middle East tensions amid signs of continued engagement, despite the U.S. move to block Iranian ports after weekend talks collapsed.

The Hang Seng Index gained 211.47 points, or 0.8%, to close at 25,872.32, while the Hang Seng China Enterprises Index added 69.55 points, or 0.8%, to 8,671.61.

After talks in Islamabad broke down over the weekend, a U.S. official said engagement was continuing and progress toward an agreement was still being made, Reuters reported.

Pakistani Prime Minister Shehbaz Sharif also said efforts to resolve the conflict were ongoing.

Meanwhile, U.S. President Donald Trump said Monday that Iran had made contact and was seeking a deal, but ruled out any agreement that would allow Tehran to possess nuclear weapons.

Signs of diplomatic engagement eased pressure in energy markets, with oil prices slipping in Asian trade.

In corporate news, Wai Chun (HKG:1013) advanced nearly 341% after entering into a cooperation agreement with Xavvi U.S. to establish a platform company targeting the global creator economy.

Voyah Automotive Technology (HKG:7489) closed 8% higher after saying its controlling shareholder, Dongfeng Motor Group, plans to increase its stake in the business.