President Donald Trump, left, poses for a photo with Chinese President Xi Jinping during a meeting on the sidelines of the G-20 summit in Osaka, Japan, June 29, 2019. (AP)

 HONG KONG, May 12, (AP): World shares and U.S. futures surged Monday after the U.S. and China announced they were suspending for 90 days most of the sharp tariff hikes each has imposed since U.S. President Donald Trump began escalating his trade war.

A joint statement said that for a 90-day period, the U.S. will cut tariffs on Chinese goods to 30% from as high as 145%. China said its tariffs on U.S. goods will fall to 10% from 125%. The agreement to allow time for more talks followed weekend negotiations in Geneva, Switzerland, that the U.S. side said had made ” substantial progress.”

The full impact on the complicated tariffs and other trade penalties enacted by Washington and Beijing remains unclear. And much depends on whether they will find ways to bridge longstanding differences during the 90-day suspension.

But as trade envoys from the world’s two biggest economies blinked, finding ways to pull back from potentially massive disruptions to world trade and their own markets, investors rejoiced.

The future for the S&P 500 jumped 2.6% and that for the Dow Jones Industrial Average was up 2%. Oil prices rallied, with U.S. benchmark crude oil gaining $1.66 to $62.68 per barrel. Brent crude, the international standard, added $1.63 to $65.55 per barrel. The U.S. dollar surged against the Japanese yen, trading at 148.18 Japanese yen, up from 146.17 yen.

The euro fell to $1.1107 from $1.1209. In other stock trading, Tokyo’s market closed before the joint statement was issued, gaining less than 0.1% to 37,644.26. But Hong Kong’s, which closes later, jumped 3% to 23,558.11. Germany’s DAX gained 1% to 23,723.55 and the CAC 40 in Paris added 0.8% to 7,805.62. Britain’s FTSE 100 edged 0.1% higher, to 8,560.42.

Investors were also watching for developments in other flashpoints including clashes between India and Pakistan, the war in Ukraine, and conflict in the Middle East.

The Sensex in Mumbai shot up 3.2% after India and Pakistan agreed to a truce after talks to defuse their most serious military confrontation in decades. The two armies have exchanged gunfire, artillery strikes, missiles, and drones that killed dozens of people.

Pakistan’s KSE 100 surged more than 9% and trading was halted for one hour following a spike driven by the ceasefire and an International Monetary Fund decision Friday to disburse about $1 billion of a bailout package for its battered economy. The Shanghai Composite Index picked up 0.8% to 3,369.24.

Chinese EV battery maker CATL, or Contemporary Amperex Technology Co., Ltd., said in a prospectus filed with the Hong Kong Stock Exchange that it plans to raise nearly $4 billion in a share listing.

Elsewhere in Asia, the Kospi in Seoul gained 1.2% to 2,607.33. Australia’s S&P/ASX 200 climbed less than 0.1% to 8,233.50. Taiwan’s Taiex gained 1%. On Friday, U.S. stocks drifted, with the S&P 500 edging 0.1% lower.

Last week was the first in seven where the index at the heart of many 401(k) accounts moved by less than 1.5%, after careening on fears about President Donald Trump’s trade war and hopes that he’ll relent on some of his tariffs.

The Dow dipped 0.3%, while the Nasdaq composite edged up by less than 0.1%. Apart from trade talks and other geopolitical factors, the flow of earnings reports for the start of the year from companies is slowing but still moving markets.

US Secretary of the Treasury Scott Bessent, (left), and US Trade Representative Jamieson Greer meet the media on the second day of a bilateral meeting between the United States and China, in Geneva, Switzerland on May 11. (AP)

GENEVA, May 12, (AP): US and Chinese officials said Monday they had reached a deal to roll back most of their recent tariffs for 90 days and keep talking to resolve their trade disputes.

US Trade Representative Jamieson Greer said the US agreed to drop its 145% tariff rate on Chinese goods by 115 percentage points to 30%, while China agreed to lower its rate on US goods by the same amount to 10%.

Greer and Treasury Secretary Scott Bessent announced the tariff reductions at a news conference in Geneva. They said the two sides had set up consultations to continue discussing their trade issues.

A pedestrian walks past the St. Vincent Jewelry Center in the Jewelry District of Los Angeles on May 2. (AP)

LOS ANGELES, May 11, (AP): At the biggest jewelry center in the United States, Alberto Hernandez fired up his machine on a recent day and waited until it glowed bright orange inside before shoveling in an assortment of rings, earrings and necklaces weighing about as much as a bar of soap: just under 100 grams, or 3.2 troy ounces. Minutes later, the bubbling liquid metal was cooling in a rectangular cast the size of a woman’s shoe.

An X-ray machine determined it was 56.5% gold, making it worth $177,000 based on the price of gold that day. As gold prices soar to record highs during global economic jitters, hundreds of thousands of dollars’ worth of gold are circulating through the doors of St. Vincent Jewelry Center in downtown Los Angeles on any given day.

Many of the center’s 500 independent tenants, which include jewelers, gold refiners and assayers, say they have never seen such a surge in customers. “Right now, we’re seeing a lot of rappers and stuff melting their big pieces,” said Alberto’s nephew, Sabashden Hernandez, who works at A&M Precious Metals. “We’re getting a lot of new customers who are just getting all of their grandfather’s stuff, melting it down pretty much.”

Gold’s current rally comes as President Donald Trump issues ever-changing announcements on tariffs, roiling financial markets and threatening to reignite inflation. In response, people across the country are flocking to sell or melt down their old jewelry for quick cash, including middlemen like pawn shop owners. Others, thinking their money might be safer in gold than in the volatile stock market, are snapping it up just as fast.

Los Angeles jeweler Olivia Kazanjian said people are even bringing in family heirlooms. “They’re melting things with their family’s wedding dates and things from the 1800s,” Kazanjian said. She recently paid a client for a 14-karat gold woven bracelet with intricate blue enamel work that could be turned into a brooch. The customer walked away with $3,200 for the amount of gold contained in the piece measured in troy ounces, the standard for precious metals equivalent to 31 grams.

But Kazanjian doesn’t plan to melt the piece. The real artistic and historical value was a lot more, she said. “It’s just stunning … and you won’t see that kind of craftsmanship again,” Kazanjian said, adding she has persuaded some customers to change their minds about melting items. “It’s a piece of history, and if you’re lucky enough to inherit it, it’s a piece of your family.”