The mood among investors has improved substantially since the US president unveiled his "Liberation Day" blitz last month, sending markets spinning and fuelling global recession fears.

Several countries have lined up to hold talks with Washington to avert the worst of the duties that range from 10 percent to as high as 145 percent on China -- Trump's main target.

On Thursday Britain became the first to announce a deal that reduces tariffs on British cars and lifts them on steel and aluminium, while in return Britain will open up markets to US beef and other farm products.

While there are several areas that still need discussing, Trump and Prime Minister Keir Starmer hailed the "historic" deal, with the US president saying it should be seen as a template for others.

But analysts said traders were more excited about the Republican leader's comments on the upcoming talks with China in which he hinted at an easing of the stiff measures aimed at the world's number two economy. That could see Beijing dial back some of its own 125 percent tariffs on US goods.

Trump told reporters that he thought the negotiations would be "substantive" and when asked if reducing the levies was a possibility, he said "it could be".

"We're going to see. Right now you can't get any higher. It's at 145 percent so we know it's coming down. I think we're going to have a very good relationship."

Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer are set to meet Chinese Vice Premier He Lifeng in Switzerland on Saturday and Sunday, the first talks between the superpowers since Trump unveiled his tariffs.

The US president also flagged efforts at home to push through the tax cuts he promised during the election campaign, adding: "This country will hit a point that you better go out and buy stock.

"Now, let me tell you this, this country will be like a rocket ship that goes straight up."

Stephen Innes, of SPI Asset Management, said: "As important as the UK deal was, Trump's tone on China was the real signal for markets -- and it handed the risk-on baton straight to Asia in a friendly, optimistic fashion.

"The president all but greenlit the idea that the days of punitive standoff might give way to negotiated momentum."

Asian markets extended the week's rally and tracked gains on Wall Street.

Tokyo jumped more than one percent on hopes for Japan's trade talks. However, Commerce Secretary Howard Lutnick warned agreements with Japan and South Korea could take longer to reach, while adding that there was "a lot of work" in striking a deal with India.

Hong Kong, Sydney, Wellington, Taipei, Manila and Jakarta also advanced, though Seoul retreated.

Shanghai also dropped ahead of key Chinese trade data that is expected to see a sharp drop off from March owing to the tariffs war.

The return of some confidence to the market also helped bitcoin recover, pushing it back above $100,000 for the first time since February. The cryptocurrency struck $104,159 on Thursday, pushing it towards the record above $109,000 seen in January.

- Key figures at around 0230 GMT -

Tokyo - Nikkei 225: UP 1.5 percent at 37,478.58 (break)

Hong Kong - Hang Seng Index: UP 0.4 percent at 22,860.47

Shanghai - Composite: DOWN 0.3 percent at 3,343.29

Euro/dollar: DOWN at $1.1201 from $1.1230 on Thursday

Pound/dollar: DOWN at $1.3219 from $1.3249

Dollar/yen: UP at 145.92 yen from 145.82 yen

Euro/pound: UP at 84.76 pence from 84.73 pence

West Texas Intermediate: UP 0.3 percent at $60.10 per barrel

Brent North Sea Crude: UP 0.3 percent at $63.05 per barrel

New York - Dow: UP 0.6 percent at 41,368.45 (close)

London - FTSE 100: DOWN 0.3 percent at 8,531.61 (close)

dan/sco

INDEX CORP.

Dow