Hong Kong's benchmark Hang Seng Index closed 3% higher after both the U.S. and China chose to de-escalate a budding trade war.

China will host a summit that includes its key Latin American trade partners this week in an effort to advance influence and partnerships in the region, as Beijing and Washington work on defusing their trade war.

Global markets were lifted after the US and China substantially reduced tariffs imposed as part of a trade war between the world’s two largest economies.