China’s blue-chip CSI300 Index closed higher by 0.8%, while the Shanghai Composite Index gained 0.7%. Hong Kong’s benchmark Hang Seng was up 1.1%.

Market reaction in Asia was rather muted after Trump yesterday began telling trade partners – from powerhouse suppliers like Japan and South Korea to minor players – that sharply higher US tariffs will start Aug 1, marking a new phase in the trade war he launched earlier this year.

China’s top leaders pledged last week to step up regulation of aggressive price-cutting by Chinese companies, as the world’s second-biggest economy struggles to shake off persistent deflationary pressures.

Shares of solar manufacturers led gains onshore, with Tongwei up 10%, after China’s industry ministry pledged to curb disorderly low-price competition in the photovoltaic industry.

Deeper policy efforts to curb excessive competition are expected to help rebalance industrial supply and demand, support a rebound in producer prices, and improve long-term earnings expectations for A-shares, analysts at Huaxi Securities said in a note.

Semiconductor shares also rose, up 1.2%, as a slew of companies posted upbeat profit alerts.

Consumer-related shares climbed in Hong Kong, as subsidies from food delivery platforms boosted consumer demand.

Xiabuxiabu, a hotpot restaurant, rose nearly 6%.

The Hang Seng Tech Index was up 1.8%.

Traders are watching for China’s key inflation data due tomorrow to gauge the health of the world’s second-largest economy in the face of persistent deflation pressure and trade risks.