Trump said on Wednesday that Washington would have a "fair deal with China" and that there was direct contact "every day". On Tuesday he had said tariffs would "come down substantially".

But China said on Thursday that there were no negotiations ongoing.

"Any claims about the progress of China-US economic and trade negotiations are groundless and have no factual basis," Commerce Ministry spokesman He Yadong told a news conference.

"China urges the United States to correct its wrong practices, show the sincerity needed for talks (and) return to the correct track of equal dialogue and consultation," He said.

On Wednesday Trump's comments, as well as his insistence that he has "no intention" of firing the head of the US Federal Reserve, Jerome Powell, boosted markets.

The broad-based S&P 500 finished 1.7 percent higher on Wednesday. European markets also rose but in early trade on Thursday headed lower, with Frankfurt down over a percent.

Trump could also exempt car parts from some tariffs on China alongside those on steel and aluminium in a "destacking", the Financial Times reported.

On Thursday Tokyo pared back earlier gains to close 0.5 percent higher, while Sydney added 0.6 percent and Shanghai ended flat. Taiwan and Hong Kong's Hang Seng fell almost a percent.

Seoul fell after official data showed South Korea's economy unexpectedly contracted 0.1 percent in the first three months of 2025.

"Both US equities and government bonds have staged a relief rally over the past 24 hours, as concerns about Fed independence and the trade war have eased," said Hubert de Barochez at Capital Economics.

"But the fact that the rally was sparked largely by conciliatory remarks from US President Trump -- whose rhetoric is notoriously volatile -- raises questions about its durability," de Barochez said.

On trade, Washington has imposed additional tariffs of 145 percent on a range of products from China, while Beijing has retaliated with levies of 125 percent on US goods.

Treasury Secretary Scott Bessent told reporters on Wednesday that Washington is "not yet" speaking with Beijing on tariffs, calling the high levies not "sustainable".

Bessent also said that in its talks with Japan on tariffs, Washington had "absolutely no currency targets", after repeated comments from Trump that he wants a stronger yen.

Japan's envoy Ryosei Akazawa met Trump and other senior US officials last week, and local media reported Thursday that he will return for another round on May 1.

Nintendo shares gained as much as 5.5 percent after its president said there were "extremely high" pre-orders in Japan for its Switch 2 game console ahead of its global launch on June 5.

- Key figures at 0830 GMT -

Tokyo - Nikkei 225: UP 0.5 percent at 35,039.15 (close)

Hong Kong - Hang Seng Index: DOWN 0.7 percent 21,909.76 (close)

Shanghai - Composite: UP 0.03 percent at 3,297.29 (close)

Euro/dollar: UP at $1.1373 from $1.1317 on Wednesday

Pound/dollar: UP at $1.3297 from $1.3257

Dollar/yen: DOWN at 142.69 from 143.49 yen

Euro/pound: UP at 85.53 from 85.34 pence

West Texas Intermediate: UP 0.74 percent at $62.73 per barrel

Brent North Sea Crude: UP 0.64 percent at $66.54 per barrel

New York - Dow: UP 1.1 percent at 39,606.57 (close)

London - FTSE 100: DOWN 0.35 percent at 8,374.17

burs-stu/sco

S&P Global Ratings

NINTENDO

INDEX CORP.

Dow