Asian markets were mixed Thursday as growing expectations that China and the United States will reach a trade agreement were offset by profit-taking after an extended rally.
Hopes Britain will avert crashing out of the EU next week also instilled some optimism on trading floors, with the pound extending gains.
High-level talks between the world's top two economies resumed Wednesday in Washington, with reports saying they are edging towards an agreement to bring the curtain down on a long-running row that helped batter markets last year.
Bloomberg News said the deal they are working on would give China until 2025 to meet pledges on purchases and to let US firms wholly own their businesses in the country.
It said the aim was to get everything in place for presidents Donald Trump and Xi Jinping to sign off on a trade deal.
White House economic adviser Larry Kudlow the talks were "making good headway" but added: "We're not there and we hope this week to get closer."
"Enforcement on the US side and lifting tariffs to cement the deal on the Chinese side seem now to be the points of contention."
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