Australian shares have risen moderately after Washington and Beijing agreed to hold further negotiations to resolve their economically-damaging trade war.

Market snapshot at 7:45am (AEST): ASX SPI futures +0.2pc at 6,610, ASX 200 (Thursday's close) +0.9pc at 6,613

ASX SPI futures +0.2pc at 6,610, ASX 200 (Thursday's close) +0.9pc at 6,613 AUD: 68.13 US cents, 55.25 British pence, 61.73 euro cents, 72.86 Japanese yen, $NZ1.07

AUD: 68.13 US cents, 55.25 British pence, 61.73 euro cents, 72.86 Japanese yen, $NZ1.07 US: Dow Jones +1.4pc at 26,728, S&P 500 +1.3pc at 2,976, Nasdaq +1.8pc at 8,117

US: Dow Jones +1.4pc at 26,728, S&P 500 +1.3pc at 2,976, Nasdaq +1.8pc at 8,117 Europe: FTSE 100 -0.6pc at 7,271, DAX +0.9pc at 12,127, CAC +1.1pc at 5,593, Euro Stoxx 50 +1pc at 3,485

Europe: FTSE 100 -0.6pc at 7,271, DAX +0.9pc at 12,127, CAC +1.1pc at 5,593, Euro Stoxx 50 +1pc at 3,485 Commodities: Brent crude +0.2pc at $US60.79/barrel, spot gold -2.2pc at $US1,519/ounce, iron ore -1.2pc at $US90.18/tonne

By 12:20pm (AEST), the ASX 200 index had lifted 0.5 per cent to 6,644 points.

Technology, energy and mining stocks are among the best performers including Cooper Energy (+6.8pc), rare earths miner Lynas Corporation (+5.6pc) and Appen (+4.7pc).

Many of the weakest performers, however, are gold miners like Northern Star Resources (-5pc) and Regis Resources (-3.8pc).

A weaker US greenback led to the Australian dollar lifting to a one-month high of 68.16 . It was the first time in over a month that it crossed the 68-cent threshold.

Wall Street and European markets surged to one-month highs as investors breathed a sigh of relief over reports that US and Chinese tensions appeared to be cooling.

In New York, technology stocks were the star performers, driving the Nasdaq index 1.75 per cent higher.

The S&P 500 lifted by 1.3 per cent, and the Dow Jones index jumped 373 points (or 1.4pc) to 26,728.

Wall Street was also boosted by strong economic data from ADP and Moody's, which showed the private sector added 195,000 new jobs last month — its fastest pace in four months. It was also much higher than what the market was expecting (140,000 jobs).

'High level' talks

The next round of US-China trade talks will be held in Washington, early next month.

"In advance of these discussions, deputy-level meetings will take place in mid-September to lay the groundwork for meaningful progress," said US Trade Representative spokesman Jeff Emerson.

These would be the first in-person, high-level discussions since a failed US-China trade meeting in July prompted both sides to impose further tariffs on each other's imports.

But there was no indication the first round of these tariffs — a 15-per-cent duty on Chinese consumer goods imposed on September 1 — would be rescinded.

Alternating signs of improvement and deterioration in the US-China trade war, often based on tweets and comments from US President Donald Trump, have repeatedly sparked volatility on Wall Street in recent months.

"Seems like it's risk-on, risk-off depending on where trade is day to day," said Stephen Massocca, senior vice-president at Wedbush Securities.

"We've seen this movie before and when talks break down you see a flight back to quality and the market."

Scepticism abounds

The United States and China remain far apart on the substance of a deal to end their 14-month trade war, with little movement since talks broke down in May.

At that time, the Trump administration accused Beijing of backtracking on earlier commitments for sweeping changes to its laws and practices on intellectual property protections, transfers of US technology to Chinese companies and increased US access to the Chinese market.

"Whether the talks occur or not, we'll see," said Tim Ghriskey, chief investment strategist at Inverness Counsel.

"And whether they are productive, we're sceptical. But the market loves it."

On Sunday, Washington began imposing 15-per-cent tariffs on an array of Chinese imports, mostly consumer products.

This led to China retaliating with its own taxes on US crude oil, then lodging a complaint against the US at the World Trade Organisation (WTO).

Washington plans to increase the tariff rate to 30 per cent — up from 25 per cent — on $US250 billion worth of Chinese imports from October 1.

Mr Trump warned on Tuesday, he would be tougher on Beijing in a second term if trade talks dragged on, compounding market fears that disputes between the United States and China could trigger a US recession.

Spot gold prices dropped 2.2 per cent to $US1,518 an ounce as the resurgent risk appetite led to investors offloading their safe-haven assets.

The Japanese currency fell 0.8 per cent, with one Australian dollar buying 72.9 yen.

Brent crude oil is steady at $US60.80 a barrel.

ABC/Reuters