China's commitments in the preliminary trade deal with the United States were not changed during a lengthy translation process, U.S. Treasury Secretary Steven Mnuchin said on Sunday.
"With most of the broad strokes of a rather limited deal already revealed, what markets will be watching for more closely will be the precise legal wording of the deal; in particular, pertaining to monitoring mechanisms on deal compliance," Mizuho Bank said in a note.
The deal is expected to be signed between U.S. President Donald Trump and China's Vice Premier Liu He on Jan. 15.
In Southeast Asia, Malaysian equities slipped to a near one-month low, with utilities and financial sectors losing the most.
Public Bank Bhd and Petronas Gas Bhd lost 1.6% and 1.4, respectively.
Meanwhile, the region's largest trading partner China is expected to post stronger export and import growth in December, a Reuters poll showed. However, analysts say the risks of re-escalation in trade tensions remain despite the preliminary deal.
Singapore equities ended 0.2% lower, with heavyweights Jardine Matheson Holdings Ltd and Singapore Telecommunications Ltd declining 0.4% and 1.5%, respectively.
Elsewhere, Thai stocks gained for a third straight session, with utilities and industrial firms gaining the most.
The country's parliament on Saturday passed a delayed draft budget bill for the 2020 fiscal year to boost Southeast Asia's second-largest economy, which is growing at its slowest pace in years.
Electricity generator Gulf Energy Development PCL rose 9.3%, while Airports of Thailand PCL added 1%.
Indonesian shares ended 0.3% higher, rising for a third consecutive session.
Indonesia's trade deficit is likely to have narrowed in December, following its largest trade gap in seven months in November, according to a Reuters poll.
Bank Rakyat Indonesia (Persero) and Unilever Indonesia gained 2.3% and 1.8%, respectively.
The Philippine stock exchange suspended trading after a volcano near its capital spewed a massive cloud of ash over Manila.
By Sameer Manekar