Oil was stable in Asian trading Tuesday on optimism that a partial trade deal between the world's two largest economies will spur demand for fuel to power trucks, trains, airplanes and cars.
Trump, who has taken a harsh stance on China's trade practices, last week tweeted that the meeting "will be a very hard one", citing massive trade deficits and American job losses.
Plus, China has also pledged to protect US intellectual property and not force companies to disclose their major secrets.
Seoul's Kospi retreated 0.1% to 2,168.15. Eastern time. It's on pace for its fourth straight gain. The Dow Jones Industrial Average rose 100.51 points, or 0.36 per cent, to 28,235.89. Meanwhile, retail sales grew by 8.0% in November, up from 7.2% a month ago.
Still, investors remained cautious as growth in China is expected to slow further next year, with the government likely to set its economic growth target at around 6% in 2020 compared with this year's 6-6.5%.
Oil prices rose more than 1%, supported by hopes last week's preliminary U.S. "China trade relationship but also eliminates the current tariffs imposed on both goods sourced from China and our goods exported to the critically important China market". Trade could even bolster the US economy in 2020, though economists caution any benefit will likely be modest. But based on the two-page "fact sheet" issued by the office of the US Trade Representative (USTR), nobody should expect Beijing to embrace reforms beyond those (such as enhancing intellectual property protection) that it was undertaking already for its own internal reasons.
Under the agreement, China is still paying tariffs.
The "phase one" deal will double USA exports to China and has been "absolutely completed", Larry Kudlow, director of the National Economic Council, told Fox News Channel.
American consumers and businesses paid an additional 42 billion U.S. dollars from February 2018 through October 2019 as a result of Washington-initiated trade disputes, U.S. anti-tariff campaign group Tariffs Hurt the Heartland said earlier this week, citing data from the U.S. Commerce Department.
YIELD EFFECT: Treasury yields rallied.
Benchmark 10-year notes fell 16/32 in price to yield 1.8766 per cent. Financial stocks helped lead the way on expectations that a healthier economy and higher interest rates will boost their profits. It rose $1.02 the previous session to $65.22. Chipmakers .SOX that make the components for its iPhones also gained, up 0.96%. Oil and gas producer EOG Resources climbed 2.8%, while Marathon Petroleum rose 4%.
West Texas Intermediate crude was up 19 cents, or 0.3%, at $60.26 a barrel. Micron Technology jumped 5.4% and Broadcom rose 3.4 %. Tech stocks have had big swings in recent months with every hint of progress on the U.S. -China trade war, were also at the head of the pack.
MAX WORRIES: Boeing fell 3.1% on a report that the company may cut production of its troubled 737 Max airplane or even suspend it all together.