China and Hong Kong stocks advanced on Monday, led by technology and property shares, as investors looked for signs that Washington and Beijing could extend their trade truce ahead of a meeting between US President Donald Trump and Chinese President Xi Jinping this week, Reuters reported.

At midday, the Shanghai Composite was up 0.6% at 3,933.37, while the blue-chip CSI300 gained 0.4%. The ChiNext Composite rose 0.9%, and Shanghai's technology-focused STAR50 index added 0.4%. The CSI AI Index climbed 1.1%, Reuters said in the report.

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Technology stocks gained after US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng concluded talks in New York on Sunday. The discussions included a US proposal for a new AI safety notification mechanism ahead of the Trump-Xi summit scheduled for September 24.

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Investor expectations for the Trump-Xi meeting remain measured, with markets watching for indications that the two countries will extend the trade truce agreed last year.

Goldman Sachs analysts said they expected both sides to seek relative stability in US-China relations, while noting that a broad bilateral agreement appeared unlikely.

China's property sector was among the strongest performers, surging 4.6%, while defence stocks gained 1.7%.

Healthcare stocks rose more than 3% following a Reuters report that the United States is working on rules governing pharmaceutical companies' investments in China. The proposed rules would likely allow companies to continue entering into most licensing agreements involving Chinese drugs, Reuters reported.

In Hong Kong, the Hang Seng Index rose 0.6% to 24,891.58, while the Hang Seng Tech Index was little changed.

Asian stock markets broadly edged higher on Monday, supported by gains in chipmakers. Oil prices eased as reports suggested more crude was making its way out of the Middle East than previously expected despite the ongoing conflict in the Gulf, Reuters reported.

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