Asian markets move higher after Trump announces initial trade agreement with China

Hong Kong (CNN Business)-Asian markets traded in the green Monday after the United States said it reached an initial agreement on trade with China.

China’s Shanghai Composite Index (SHCOMP) improved 1.5%, following a 0.9% rise on Friday. South Korea’s Kospi (KOSPI) jumped as much as 1.5% in early trading. It’s currently up 1.2%. The Kospi also ended positive Friday. Hong Kong’s Hang Seng Index (HSI) opened up 0.8% and is currently up 1.1%. The index seems likely to extend its gains from Friday, when it logged its biggest daily increase in more than a month.

Japanese markets were closed Monday for a holiday. US President Donald Trump announced Friday that the United States and China have reached a “very substantial phase one deal.”

Details are still to be finalized, but it includes a halt on US tariff increases that were supposed to go into effect this week. Trump also told reporters that intellectual property, financial services and agricultural purchases are included in the agreement.

Trump also suggested that he would meet Chinese President Xi Jinping at next month’s APEC summit in Chile.

Trade tensions have dominated global markets. But sentiment has improved after the most recent developments. In the United States, futures for the Dow (INDU), S&P 500 (SPX) and Nasdaq (COMP) were all trading up 0.2% Monday during Asian hours.