Indian shares logged their best session in more than four years on Monday, surging nearly 4% in a broad-based relief rally after the country reached and held a fragile ceasefire with Pakistan over the weekend after days of cross-border clashes.

After the cessation of hostilities between India and Pakistan, shares of major defence firms in China took a sharp downturn with the Hang Seng China A Aerospace & Defence Index trading 3 percent lower.

Stocks in India and Pakistan are set for a relief rally following a surprise ceasefire agreement between the two nuclear-armed neighbors on Saturday, as investor focus shifts back to improving economic outlook.