Markets finished sharply higher in the Chinese mainland and Hong Kong on hopes for an economic bounce as COVID-19 containment measures eased in major cities including Beijing and Shanghai.

The Hang Seng Index jumped 2.71 percent, or 571.77 points, to 21,653.90.

The Shanghai Composite Index added 1.28 percent, or 40.91 points, to 3,236.37, while the Shenzhen Composite Index rose 2.32 percent, or 47.05 points, to 2,073.55.

"The expectations for economic recovery is rising as Beijing and Shanghai try [their] best to resume work and production," said Meng Shen, of investment bank Chanson & Co.

Adding to the upbeat mood were comments from U.S. commerce chief Gina Raimondo that the Biden administration is considering lifting tariffs on some goods from China to help in the battle against inflation.

(With input from AFP)