Mainland Chinese markets, which are closely watched in relation to Beijing's trade war with Washington, also rose on the day
The Shanghai composite was up around 0.72 percent to close at about 2,533.09 while the Shenzhen composite jumped 1.713 percent to end its trading day at approximately 1,301.41. The Shenzhen component gained 1.584 percent to close at about 7,400.20.
The U.S. and China are holding vice ministerial level trade talks in Beijing on Jan 7-8, according to the Chinese commerce ministry. Reports said a working team led by Deputy U.S. Trade Representative Jeffrey Gerrish will meet Chinese officials to have "positive and constructive discussions."
For its part, China is willing to resolve its trade disputes with the U.S. on an equal footing, according to Lu Kang, spokesman at the Chinese foreign ministry.
"I'm not sure what the... sort of fundamental substantive point of these trade talks will be," Rob Carnell, ING's chief economist and head of research for Asia Pacific, told CNBC's "Squawk Box" on Monday.
"I'm convinced that this will be displayed as a positive result, whatever they actually agree. What slightly worries me is that at times when the U.S. administration delivers these sorts of positive results, it makes it very contingent on future activities," Carnell said.
The world's two largest economies slapped a series of punitive tariffs on each other's goods last year, sparking concerns over a global economic slowdown. The U.S. has already put tariffs on $250 billion in Chinese goods — and has threatened duties on double that value of products. Beijing has responded with tariffs on $110 billion in U.S. goods targeting politically important industries such as agriculture.
Monday's talks will follow moves and comments from central banks in both the U.S. and China.
The People's Bank of China cut the reserve requirement ratio (RRR) — the amount of cash that banks have to hold as reserves— by 1 percent last Friday in a bid to stimulate lending amid concerns over a slowing economy.
One analyst said the Chinese central bank's moves might not bolster growth in the world's second-biggest economy.
"When you cut the... RRR, you release a lot of liquidity but it's probably just going to go into refinancing bad projects from the past. And these bad projects, they're not gonna stimulate growth," Cliff Tan, East Asian head of global markets research at MUFG Bank, told CNBC's "Street Signs" on Monday.
"Last year, we started the year by saying that China's credit risk had actually risen in 2017 rather than fallen, which is a contrarian view," Tan said. "Defaults in China in 2018 tripled. Both in terms of numbers and in terms of value. Now we're seeing that credit itself is growing so fast it may not be possible to engineer a soft landing."
Over in the U.S., Federal Reserve Chairman Jerome Powell said the central bank would be "patient" in observing how the economy performs this year, and adjust monetary policy accordingly. Powell's comments, along with a strong jobs report stateside, sent stocks soaring last Friday after months of turmoil over concerns that the Fed could raise interest rates too quickly.