Earlier Friday, the Chinese foreign ministry said Trump and Xi had an "extremely positive" phone conversation Thursday. Trump is said to be interested in reaching an agreement on trade with Chinese President Xi Jinping at the G20 summit in Argentina at the end of the month.
Tokyo's benchmark Nikkei index surged 2.56 percent, while the broader Topix was up 1.64 percent, also on hopes of a breakthrough in US-China trade relations. "But it will be a good deal for the United States". It "likely reflects the fact that businesses in the United States are starting to feel the impact of the trade conflict through higher prices and squeezed margins", she said.
A Chinese state-owned company was charged on Thursday with stealing technology from U.S. chipmaker Micron Technology Inc., part of a Justice Department crackdown against China in cases of suspected economic espionage.
A Bloomberg report said the United States president had asked officials to begin drafting a potential trade agreement with China, citing unnamed sources.
The moves also follow media reports that pointed to progress on the US-China trade dispute.
Trump on Thursday said he had "very good" talks with Xi on the growing trade conflict between the two economic giants.
James Zimmerman, a partner with the Beijing office of law firm Perkins Coie and former chairman of the American Chamber of Commerce in China, questioned Trump's sincerity with regards to a possible trade deal.
President Trump on Friday signaled the U.S.is getting closer to a trade deal with China.
Just after the upbeat readouts of the Trump-Xi call, the Justice Department announced the latest in a long list of actions against what Trump administration calls China's cheating through intellectual property theft, unfair corporate subsidies and rules hampering U.S. corporations in China.
The ruling party needs to nurture conditions to "let the private economy create vitality", said Xi in a speech Thursday to a group of entrepreneurs, according to the official Xinhua News Agency.
Markets rallied in Asia and Europe after Mr Trump said that he and Mr Xi had spoken by phone about trade matters for the first time since April, before the countries became locked in a tit-for-tat tariffs battle.
China's economy grew by a slower-than-expected 6.5 percent in the 3 months to September.
"We will see what happens at the G20 and with Liu's talks, but I am not optimistic that anything momentous will come out of this", Zimmerman said.