US, China agree to reduce tariffs for 90 days: Joint statement
In a joint statement the US side said it would reduce tolls to 30 percent while Chinese tariffs would be cut to 10 percent.
That came after US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met Chinese Vice Premier He Lifeng and international trade representative Li Chenggang in the first known talks since Trump's 'Liberation Day' announcement.
'We've made substantial progress between the United States and China in the very important trade talks,' Bessent told reporters, while the White House has hailed what it called a new 'trade deal'.
China's He said the atmosphere in the talks was 'candid, in-depth and constructive', adding that they were 'an important first step'.
Asian markets jumped, with Hong Kong up more than three percent while Shanghai also enjoyed healthy buying interest.
Tokyo, Sydney, Seoul, Taipei and Wellington were all in the green.
London, Paris and Frankfurt all rose more than one percent.
US futures surged more than one percent.
Mumbai jumped more than three percent after India and Pakistan agreed a ceasefire at the weekend following four days of missile, drone and artillery attacks between the two countries which killed at least 60 people and sent thousands fleeing.
Pakistan's stock exchange rocketed more than nine percent.
Oil prices jumped more than three percent owing to speculation easing China-US tensions would help demand. The dollar also advanced one percent against the euro and yen.
Gold, which rallied last month over a rush to safe havens, extended losses.
'The initial reaction to the weekend US-China talks (is) predictably encouraging,' said Chris Weston at Pepperstone.
However, Karsten Junius at Bank J. Safra Sarasin was cautious.
'We expect financial markets to remain volatile over the coming months, as they have almost fully priced out negative economic surprises and could once again be disrupted by more serious obstacles in trade negotiations,' he said in a commentary.
'In all likelihood, things may still get worse before they get better.'
Investors are also awaiting the release this week of data on US inflation and retail sales, which will provide a fresh snapshot of the world's biggest economy since the tariffs were first unveiled.
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