Hong Kong stocks rose on Tuesday, with the benchmark approaching a two-month high amid hopes the US and China will hold high-level talks to resolve the trade dispute.

The Hang Seng Index gained 1.1 per cent to 23,420.36 at the noon break. The Hang Seng Tech Index added 0.6 per cent. On the mainland, the CSI 300 Index and the Shanghai Composite Index both strengthened 0.5 per cent.

Electric-vehicle maker Li Auto jumped 6.5 per cent to HK$117.10 and gold producer Zijin Mining Group advanced 3 per cent to HK$18.30. Industrial and Commercial Bank of China rallied 3 per cent to HK$5.80 and China Construction Bank added 2.8 per cent to HK$49.35. Alibaba Group Holding added 0.3 per cent to HK$113.50 and Tencent Holdings added 0.7 per cent to HK$502.

Traders are watching the latest developments in the trade negotiations. US President Donald Trump was “likely” to speak to his Chinese counterpart Xi Jinping this week, White House spokeswoman Karoline Leavitt said on Monday, without giving more details.

Direct talks between Xi and Trump, which have not taken place since Trump’s return to the White House in January, would largely calm investors as they could lead to a long-term trade deal between Beijing and Washington, following a 90-day tariff truce reached in Switzerland in early May.