Hong Kong and Shanghai led another rally across Asian markets on Friday after Donald Trump's tweet hailing positive talks with Chinese President Xi Jinping was seized on by dealers hoping for a breakthrough in their trade row.
'We've had a very good discussions with China, we're getting much closer to doing something, ' Trump said before departing the White House for a campaign event.
China's foreign ministry says a phone conversation between President Xi Jinping and his American counterpart, Donald Trump, about trade and other issues was "extremely positive".
One person said a sticking point in any potential deal is intellectual property theft, where the Trump administration has sought to take a hard line.
Meanwhile in an interview, Secretary of State Mike Pompeo said China was the most important long-term strategic challenge for the US.
"We are not on the cusp of a deal", Kudlow said. But Friday's uptick came despite a lack of details on how Trump aims to reach a deal with Xi after months of exchanging economic blows.
"Dollar moderation, the stabilising trade relationship between USA and China and more stimulus from Beijing will be the key ingredients to revive market confidence in Asia".
The US President underscored that he and Xi would try to resolve differences to end the brewing trade war between Washington and Beijing.
After their last publicly reported phone call in May, Trump rekindled trade talks by easing sanctions on Chinese telecom equipment maker ZTE Corp, only for negotiations to break down days later.
Trump and Xi both expressed optimism about resolving their bitter trade disputes ahead of a high-stakes meeting planned for the two leaders at the end of November in Argentina. The indictment also names United Microelectronics, a Taiwan-based chipmaker, in what Attorney General Jeff Sessions said was "brazen scheme" to steal secrets worth up to $8.75 billion.
The news comes as the volatile trade relations weigh in on the U.S. stock market, with stocks taking a turn after a rally in world equity markets came to a close and gains reversed on Wall Street.
Lu Xiang, a specialist on USA affairs at the Chinese Academy of Social Sciences, said that Beijing had been preparing for a "worse than the worst" confrontation with the U.S., and added that any further escalation would be fatal to an already highly volatile United States stock market.
Trump revealed Thursday that he had spoken with Xi on several subjects, but focused on trade. They very much want to make a deal.
"Both leaders attach great importance to China-U.S. ties and economic ties", Lu said. There was a also a strong gain of 3% for the export-oriented Kospi index in South Korea.
China and the United States can overcome their differences and get relations back on track if they work together in a spirit of mutual respect, Chinese Premier Li Keqiang told a group of visiting USA politicians on Thursday.