Trump expressed concern negotiations might be affected by legislation he signed last week that is meant to buttress Hong Kong's status as a semi-autonomous Chinese territory amid tension over anti-government protests.
Monthly surveys showed Chinese manufacturing output rose in November, defying expectations of a decline.
However, a trade deal was now "stalled because of Hong Kong legislation", news website Axioms reported on Sunday, citing a source close to U.S. President Donald Trump's negotiating team.
The Hang Seng index ended 0.4% firmer at 26,444.72, while the China Enterprises Index gained 0.6% to 10,363.91.
However, "caution may be the flavor of the month" until investors see what happens with USA tariffs, said Varathan.
MSCI's broadest index of Asia-Pacific shares outside Japan tanked 0.9%.
The market also enjoyed a boost after the Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) index rose to 51.8 in November from 51.7 in the previous month, marking the fastest expansion since December 2016.
A separate survey by the China Federation for Logistics & Purchasing rose to 50.2 from 49.3. The Dow, S&P 500 and Nasdaq were all up 0.3%.
The return to expansionary territory "strengthened the case for a short-term growth stabilization", said Citigroup economists in a report.
However, on the whole, traders are now betting that while the USA legislation spoils the temper, ultimately, it remained in the interest of Washington as well as Beijing to move ahead with discussions to get a trade settlement.
However, worries persisted over the prospects of a proposed Sino-U.S. trade deal, with a deadline on an imposition of additional 15% tariffs on Chinese products by the United States just two weeks away.
Trump expressed concern negotiations might be affected by legislation he signed last week that is meant to buttress Hong Kong's status as a semi-autonomous Chinese territory amid tension over anti-government protests. It lost $2.94 the previous session to $55.17.
Australia's declined 0.83% to end at 6,232.80 as the sectors declined, with the energy subindex dropping 1.86 percent as shares of oil companies fell. shed 2.18%, dropped 4.31% and slipped 2.07%.
CURRENCY: The dollar gained to 109.64 Japanese yen from Friday's 109.48 yen.