KUALA LUMPUR, Malaysia -- A trade deal between the United States and China is drawing closer, officials from the world’s two largest economies said Sunday as they reached an initial consensus for President Donald Trump and Chinese leader Xi Jinping to aim to finalize during their high-stakes meeting.

US and Chinese officials have reached a framework agreement, averting a potentially ruinous 157% tariff on Chinese goods while paving the way for a potential trade deal to be discussed between President Donald Trump and Chinese leader Xi Jinping later this week.

Stocks spiked to al-time highs to start the week. extending gains from Friday's record-setting rally. Chips and rare earth stocks were among the big movers.

The U.S. and China are nearing a trade truce weeks after President Donald Trump threatened Beijing with new 100% tariffs over a mineral trade dispute.

Chinese and US trade negotiators have lined up an array of diplomatic wins for Donald Trump and Xi Jinping to unveil at a summit this week. Those easy hits are pleasing investors, but leave deeper core conflicts unresolved.

President Trump is in Asia on a high-stakes trip. Both sides today said a framework has been reached for a potential trade deal with China. NBC News’ Garrett Haake reports.

President Trump will meet with Chinese President Xi on Thursday in an attempt to stop the trade war from escalating. Also, Trump terminated trade talks with Canada again after a TV ad played an audio of former President Ronald Reagan criticizing tariffs.

The European Union and China will hold talks this week to address trade disputes as Beijing’s restrictions on exports of key minerals and chips risk disrupting Europe’s auto industry.