Hong Kong stocks remained largely unaffected by trade tensions between China and the United States and closed with more than 2.8 percent in gains.

The benchmark Hang Seng Index hit a nearly two-month high at 20,885 points during the day amid hopes that talks between Chinese and US leaders would alleviate trade friction, and slipped to 20,297 on news that China hit back at US tariffs.

It then rallied and closed at 20,789 points.

According to a Reuters report, after the additional 10 percent US tariff on Chinese exports took effect, Beijing announced it was conducting an investigation on Google as well as imposing its own tariffs on imports of US oil, coal, gas, cars and farm equipment from February 10.