Two Asian markets hit record levels on Monday, while Chinese stocks roseto their highest in over a decade amid optimism of a US-China trade deal

The news spotlight will focus on Malaysia this weekend, for the latest tariff talks, another episode of 'Trump the Peacemaker' and key issues for Southeast Asian nations and global heavyweights

Trade officials from the US and China will meet in Kuala Lumpur this weekend to try to reach a trade deal that allows their leaders to meet in Seoul next week.

Shares of Australian miners and US industrial giant Alcoa rose on Tuesday after a deal on rare earth and gallium projects was signed at the White House

The US wants a trade deal to resolve disputes on rare earths, soybeans and fentanyl, but it's uncertain if talks can achieve that, given China's tough stance on rare earths

Beijing reports healthy industrial growth, but analysts say the country's domestic slowdown makes its economy seriously unbalanced

Trump confirms he will meet with President Xi in two weeks in South Korea, but said any deal with Beijing 'will have to be fair.'

China's Global Times says the rise in trade tensions stems from the US expanding its 'Entity List', which preceded Beijing's ramp up of controls on rare earths

There are 17 rare earths that are vital materials in products ranging from electric vehicles to aircraft engines and military radars and exports of 12 of them are now restricted

Delays on export license applications began in September, before Beijing's move last week to expand controls over the critical minerals used in magnets, sources say

Analysts say investor mood remains fragile amid the recent round of trade uncertainty between China and the US

"We believe the US and China could both be strengthening their leverage in trade talks, ahead of a potential summit between the two presidents," Citi analysts said