HONG KONG, Nov 5 — Asian markets rose again today, tracking a record lead from Wall Street as trade optimism was given another lift by a report saying the US was considering cutting some tariffs on Chinese goods.

The rally built on yesterday’s advance with global equities buoyed by expectations the economic superpowers are close to a mini trade deal, strong earnings and lower interest rates.

A forecast-busting US jobs report on Friday and signs the American economy is stabilising added to the upbeat mood.

The Financial Times said today that the White House is considering dropping existing tariffs on more than US$100 billion of imports in a bid to seal the deal with China.

It cited unnamed sources as saying officials were looking at rolling back levies on a range of imports including clothing, appliances, and flatscreen monitors, which have been subject to 15 per cent rates since September 1.

The US has imposed duties on Chinese goods worth hundreds of billions and the removal of some of these is said to be a key demand of Beijing in any trade agreement.

Meanwhile, a Bloomberg News article said Chinese officials were considering locations in the United States that Xi Jinping and Donald Trump could hold a signing ceremony as early as this month.

Jeffrey Halley, senior market analyst for Asia-Pacific at OANDA, said: “It could be interpreted as the US blinking first as the presidential impeachment hearings gather momentum, and we approach the holiday season and then an election year.”

More Hong Kong woe

AxiTrader senior market analyst Stephen Innes said that while shares have enjoyed a long run on the back of the trade deal hopes, investors appeared willing to press on with their buying for now.

“The question is whether the market has now priced in the... phase one trade deal,” he said in a note.

“And for the time being it appears, risk markets are in benefit-of-the-doubt mode, preferring to look through any fragility in macro data, while applying a higher weight to comments on trade.”

Tokyo led gainers as it reopened after a long weekend to play catch-up with yesterday’s rally.

The Nikkei ended 1.8 per cent higher, while Shanghai rose 0.5 per cent, Sydney added 0.2 per cent and Singapore put on 0.4 per cent. Seoul climbed 0.6 per cent, with Taipei rallying 0.8 per cent.

Hong Kong rose 0.5 per cent as investors there brushed off data showing a key measure of business confidence fell to its lowest level in more than a decade as the city reels from global trade woes and violent democracy protests.

The Purchasing Managers Index — which measures the health of the private sector — dropped to 39.3 in October, its worst reading since 2008 during the global financial crisis, heaping fresh misery on the unrest-plagued city.

The reading is well below the 50 level that separates growth from contraction and is also sharply down from the 41.5 seen in September.

Bernard Aw, principal economist at IHS Markit, said: “Anecdotal evidence revealed that the retail and tourism sectors remained particularly affected.”

In early trade, London and Paris each rose 0.1 per cent, while Frankfurt was flat.

Key figures around 0820 GMT

Tokyo — Nikkei 225: UP 1.8 per cent at 23,251.99 (close)

Hong Kong — Hang Seng: UP 0.5 per cent at 27,683.40 (close)

Shanghai — Composite: UP 0.5 per cent at 2,991.56 (close)

London — FTSE 100: UP 0.1 per cent at 7,377.61

Euro/dollar: UP at US$1.1135 from US$1.1126 at 2130 GMT

Dollar/yen: UP at 108.82 yen from 108.58 yen

Pound/dollar: UP at US$1.2893 from US$1.2881 

Euro/pound: DOWN at 86.33 pence from 86.38 pence 

West Texas Intermediate: DOWN nine cents at US$56.45 per barrel

Brent North Sea crude: DOWN two cents at US$62.12 per barrel

New York — Dow: UP 0.4 per cent at 27,462.11 (close)

Bloomberg News contributed to this story — AFP