In Asian Equity Markets stocks in China rose on Monday morning following a report that Beijing is offering to lower tariffs on certain U.S. products as part of a trade deal with Washington. By the end of the morning session, the Shanghai composite rose 2.64 percent. Hong Kong’s Hang Seng index also jumped 1.16 percent, with shares of Chinese telecommunications equipment firm ZTE gaining 4.51 percent. Japan’s Nikkei 225 advanced 1.11 percent as shares of index heavyweight Fanuc jumped 3.64 percent. The ASX 200 in Australia rose 0.41 percent.

In Currency Markets the Australian dollar and the Chinese yuan inched up on hopes Washington and Beijing were close to a trade deal after a bitter year-long tariff dispute. The Aussie gained as much as 0.57 percent to $0.7118, before giving up some of its gains to $0.7085 following soft business inventories and declines in job advertisements and dwelling approvals. The Reserve Bank of Australia will hold its policy meeting on Tuesday. The Chinese yuan ticked up 0.20 percent to 6.7030 to the dollar in offshore trade, edging near its 7-1/2-month high of 6.6737 hit last week.

In Commodities Markets oil prices rose on Monday as supply tightened amid output cuts by producer club OPEC and as the United States and China were reported to be close to signing a trade deal that would end a tariff row that has slowed global economic growth. International Brent futures were at $65.46 a barrel, up 39 cents, or 0.6 percent, from their last close. U.S. WTI crude futures were at $56.16 per barrel, up 36 cents, or 0.6 percent. The rally came on reports that the United States and China are close to ending their trade disputes, which have weighed on global economic growth.

In US Equity Markets the S&P 500 and the Nasdaq snapped a three-day run of losses on Friday as optimism about the prospects for a U.S.-China trade agreement countered downbeat U.S. and China manufacturing data. The S&P 500 gained 0.69 percent, to 2,803.69 and the Nasdaq Composite added 0.83 percent, to 7,595.35. The energy sector rose 1.8 percent despite a decline in oil prices. Gap Inc jumped 16 percent, making it the biggest percentage gainer in the S&P, after it said it would separate its better-performing Old Navy brand and close about 230 Gap stores.

In Bond Markets U.S. Treasury yields rose on Friday as investors sold off safe-haven assets on hopes for a U.S. trade deal with China and shrugged off soft economic data reports whose release was delayed by the government shutdown. The 10-year Treasury yield was last up 4.4 basis points at 2.755 percent, its highest in more than a month. Yields also were higher at either end of the curve, with the two-year yield up 4.5 basis points at 2.557 percent and the 30-year up 4.2 basis points at 3.126 percent.