Asian markets were mixed Monday on broad optimism that China and the United States are close to a mini trade deal, while Hong Kong rallied after last week's hefty losses but investors remain on edge over violent protests that have wracked the city.
US traders sent the Dow above 28,000 for the first time on Friday after top White House officials played up the progress of negotiations with Beijing.
Donald Trump's economic adviser Larry Kudlow said the first part of a wider pact was on track, while Commerce Secretary Wilbur Ross said that there'll be a deal "in all likelihood".
Then on Saturday, China said Vice Premier Liu He had spoken to US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, and had "constructive discussion on each side's core concerns regarding the phase-one agreement".
It added that the two sides will "continue to maintain close communication".
The comments provided a much-needed fillip after differences over whether, when and by how much to reduce tariffs on each other's goods spilled out into the open.
Trump this month denied the Chinese commerce ministry's claim that the two sides had agreed to roll back existing tariffs as part of the deal, details of which have not been released.
Shanghai rose 0.6 per cent and Tokyo ended 0.5 per cent higher, while Taipei added 0.6 per cent and Bangkok put on 0.1 per cent.
"Renewed optimism about US-China trade negotiations seems to have been the main initial driver of improved risk sentiment," said Patrik Schowitz at JP Morgan Asset Management.
"In the current round of talks, more than in previous rounds, we see momentum toward reaching at least a limited trade deal, and certainly a mini-deal would remove some of the negative sentiment overhang for the real economy and markets."
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