Observers expect Donald Trump to announce an extension of a trade war truce reached with China last month, ahead of a 90-day deadline due to expire Tuesday.

Meanwhile, a key US consumer price index report is set up for Tuesday and could shape future policy decisions by the Federal Reserve, which has come under increasing pressure from the president to cut rates.

Investors have ramped up their bets on the central bank lowering borrowing costs at its next meeting in September following a series of reports -- particularly on jobs -- indicating the world's number one economy was slowing.

Also in view is a high-stakes summit between Trump and Russian counterpart Vladimir Putin on Friday in Alaska, which could pave the way for a deal to resolve the Ukraine war that involves an easing of tough sanctions on Moscow.

In early trade, Hong Kong, Shanghai, Sydney, Seoul, Wellington, Taipei and Jakarta all rose though there were losses in Singapore and Manila. Tokyo was closed for a public holiday.

With Tuesday's US-China tariff truce deadline looming, investors are bullish about the prospects of another extension.

"The market has fully subscribed to the high probability of the tariff truce being rolled over for another 90 days" said Chris Weston of Pepperstone.

"As such, unless diplomatic talks fully break down, news of extension shouldn't move markets too intently," he added.

Gold futures edged down after hitting a record high Friday following reports of an unexpected tariff on the precious metal.

Despite protracted uncertainty about trade, investors remain optimistic about artificial intelligence -- an area of fierce competition between Beijing and Washington.

Reports Monday said that US chip giants Nvidia and Advanced Micro Devices (AMD) had agreed to pay Washington 15 percent of their revenue from selling AI chips to China.

Investors are betting that AI will transform the global economy, and last month Nvidia -- the world's leading semiconductor producer -- became the first company ever to hit $4 trillion in market value.

- Key figures at 0300 GMT -

Hong Kong - Hang Seng Index: UP 0.2 percent at 24,896.02

Shanghai - Composite: UP 0.3 percent at 3,644.73

Tokyo - Nikkei 225: Closed for a holiday

Pound/dollar: UP at $1.3457 from $1.3451 on Friday

Euro/dollar: UP at $1.1667 from $1.1643

Dollar/yen: DOWN at 147.56 yen from 147.79 yen

Euro/pound: UP at 86.70 pence from 86.54 pence

West Texas Intermediate: DOWN 0.6 percent at $63.50 per barrel

Brent North Sea Crude: DOWN 0.5 percent at $66.27 per barrel

New York - Dow: UP 0.5 percent at 44,175.61 (close)

London - FTSE 100: DOWN 0.1 percent at 9,095.73 (close)

pfc/dan

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