The Trump administration is hailing a potential deal that may return the U.S.-China relationship to where it was before the president began a trade war against Beijing.

The United States and China appear to have hammered out the framework of a trade deal in advance of Presidents Donald Trump and Xi Jinping's meeting this week, removing the threat of an imminent collapse in trade between the world's two largest economies.

The Trump administration is widely expected to make a fresh agreement on trade this week with China, and U.S. stocks are rallying Monday.

U.S. President Donald Trump, on board Air Force One, expressed optimism about trade talks with China on Monday.

By Trevor Hunnicutt and Rozanna Latiff KUALA LUMPUR (Reuters) -U.S. President Donald Trump hit the ground running on the first leg of his Asian tour on Sunday, announcing a slew of trade agreements in Malaysia and joining the signing of an expanded truce between Thailand and Cambodia that he brokered in July.

Asian shares rallied and U.S. futures jumped Monday, with Japan’s benchmark Nikkei 225 topping 50,000 for the first time as U.S. President Donald Trump said he expected to reach a trade agreement with China.