Stocks in Asia Pacific were higher on Monday as data releases showed China's factory activity expanding in May.

President Donald Trump announced Friday he would be taking action to eliminate special treatment for Hong Kong, following China's approval of a controversial national security bill for the city.

"With specific and verifiable measures against China appearing to be weak, markets may draw hollow consolation that the US is treading carefully; especially given risks of unintended economic consequences of far more damage being caused to Hong Kong and non-negligible harm to US economic interests," Varathan said.

Investor focus on Monday was likely on Chinese economic data for a better gauge of the state of the country's economic recovery from the coronavirus pandemic.

Data released over the weekend by China's National Bureau of Statistics showed factory activity in the country expanding in May, with the official manufacturing Purchasing Manager's Index (PMI) coming in at 50.6.

Meanwhile, a private survey also showed China's manufacturing activity expanding in May.

That was higher than a 49.6 print expected by analysts in a Reuters poll.