Stocks markets in China closed up more than 5 percent Monday, rallying after U.S. President Donald Trump announced he was postponing new tariffs on China because of what he said were "substantial progress" in trade talks between the world's two largest economies.
"A very good weekend for U.S. and China," Trump tweeted Sunday, saying both sides made progress on "important structural issues, including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues."
The president had set a March 1 deadline to hike tariffs on $200 million in Chinese goods from 10 to 25 percent if there was no deal.
Stocks rose in major markets around the world Friday on bets of progress in trade talks between China and the United States, while crude futures hit their highest level in more than three months supported by ongoing supply cuts.
U.S. President Donald Trump said Friday that there was a very good chance the United States would strike a deal with China to end their trade war and that he was inclined to extend his March 1 deadline to reach an agreement.
While there is still no final agreement, Trump had said he would postpone those tariffs if a deal were close.
The U.S. president did not say how close both sides are. But he said he will hold a summit with Chinese President Xi Jinping at his Mar-a-Lago resort to "conclude an agreement."
Senior U.S. and Chinese officials have been holding a series of trade talks in Beijing and Washington since Trump and Xi declared a 90-day truce in their trade war in December so a deal can be worked out.
The U.S. has long accused China of numerous unfair trade practices. They include the alleged theft of intellectual property and demands U.S. firms turn over trade secrets if they want to do business in China.
The Chinese have denied the accusations and say it is the U.S. that is guilty of trade violations meant to stifle China's economic development.