Hong Kong stocks rose more than 400 points as Shanghai's reopening plans sparked gains in selective sectors like consumer and travel.

The benchmark Hang Seng Index climbed 426 points to 21,123 while the tech gauge surged 3.9 percent, with Meituan (3690) rallying 6.8 percent. Alibaba (9988) gaining 4.3 percent and Tencent (0700) up 2.4 percent.

Chinese sportswear maker Li Ning (2331) soared 11 percent, the best performer among blue chips.

Restaurant chain Haidilao International (6862) jumped 9.7 percent while China Resources Beer (0291) rose 8.2 percent.

Travel shares also surged, with Trip.com (9961) rising near 4 percent.

In money markets, the yuan closed at a one-week high of 6.6648 against the US dollar, up 433 basis points from the previous day.

A small but growing group of investors and analysts are now calling a bottom for Chinese markets after strict lockdowns prompted banks including

J P Morgan and Goldman Sachs to slash their growth forecasts for the economy.

Some of those concerns are starting to abate as Shanghai, the epicenter of the latest Covid outbreak, rolled out a raft of measures to support a return to normalcy on Sunday.

The city said it would accelerate approvals for property projects and raise the quota for car ownerships, while Beijing also started to ease its control on movements over the weekend after authorities said the outbreak there was under control.

Tommy Xie, head of Greater China research at Overseas Chinese Banking Corp, expects the Chinese economy to recover from June onwards. The yuan could be a useful barometer to gauge market confidence in China's policy efficiency, he said.

Stocks cheer as Shanghai reopens