Chinese shares ended Monday's session with gains, buoyed by an improvement in global investor sentiment following the announcement of a peace agreement between the U.S. and Iran.
The Shanghai Composite Index, the main gauge of Chinese stocks, rose 1.6% to 4,096.47. The Shenzhen Component Index surged 3.8% to 15,531.11.
According to Pakistani Prime Minister Shehbaz Sharif, whose country is acting as a neutral intermediary, both Washington and Tehran have declared an "immediate and permanent cessation" of military activities across all fronts, including Lebanon. The official signing ceremony is scheduled for June 19.
"The development is supporting equities and AI-led equity optimism remains intact," Reuters cited Wee Khoon Chong, APAC Macro Strategist at BNY, as saying.
Meanwhile, China's Commerce Ministry expressed "strong dissatisfaction and firm opposition" to the U.S. government's inclusion of several large Chinese firms in a list of entities aiding the Asian country's military.
Beijing called on Washington to stop its "erroneous practices" and provide non-discriminatory treatment to Chinese firms.
In company news, Guangxi Energy (SHA:600310) plans to acquire 33.7% of Guangxi Guangtou Qiaogong Energy Development for 1.05 billion yuan. Shares of the electricity service provider closed 6% higher Monday.