As part of the deal, China would agree to some agricultural concessions and the USA would provide some tariff relief. Also, more than 100,000 people are under evacuation orders as a wildfire rages in Southern California.
The need for increased food imports from the United States persuaded the Chinese that both sides could benefit from a partial deal even if it did not involve complete elimination of Trump's new tariffs, a person familiar with the talks said.
The S&P index recorded 26 new 52-week highs and no new low, while the Nasdaq recorded 42 new highs and 38 new lows. Trump has said he was willing to use Huawei as a bargaining chip in the trade talks.
The deal is far from the type of comprehensive agreement Trump has been pushing for, and it leaves some of the administration's biggest concerns about China's economic practices unresolved.More news: Zelenskiy ready to open probe into any Ukraine meddling in Trump election
While the details are scant, Mnuchin said the sides made good progress on opening the Chinese economy to financial services, while including an agreement on preventing manipulation of the yuan. "So you'll either have two phases or three phases".
The president said a currency agreement may also be in the works. But he left tariffs on hundreds of billions of dollars of Chinese products in place.
That would be a stunning feat, more than doubling from the prior level of less than US$20 billion in 2017.
The emerging deal, covering agriculture, currency and some aspects of intellectual property protections, would represent the biggest step by the two countries in 15 months to end a tariff tit-for-tat that has whipsawed financial markets and slowed global growth.
After earlier attempts at a truce between Trump and his Chinese counterpart Xi Jinping did not pan out businesses remained cautious, Innes said. Comments expressing support for protests in Hong Kong from the general manager for the NBA's Houston Rockets had also prompted an angry response from Chinese state-run news outlets, though The New York Times reported on Thursday that the government was seeking to quell public unrest. Friday's pact might reduce that slightly to 0.5 percentage point, he said. "That's a separate process".More news: Intel kills collaboration with AMD on Core processors with Radeon graphics
Thorny issues appear to remain, including China's tendency to subsidize core industries and force USA companies to transfer technology to Chinese partners.
Ownership limits will be ended for mutual fund companies on April 1 and for securities firm on December 1, the China Securities Regulatory Commission said.
U.S. and Chinese negotiators have reached a preliminary agreement that would ease trade tensions but fall short of a comprehensive deal, people familiar with the talks told CNN on Friday.
First, an "ice-breaking meeting that will lead to a major deal" in the coming months, second, a "mini-deal" focusing on China's purchase of US products and some structural reforms while new tariffs get postponed indefinitely, third, a no-deal status quo where new tariffs come into play, but negotiations continue, and finally, a break-up scenario, where there's no deal and no further dialogue between the USA and China.More news: Volvo XC40 Electric Shows New Android-Powered Infotainment