US Markets Gain On Media Tariffs Report

US stocks were little changed through early afternoon but jumped after The Wall Street Journal reported that Treasury Secretary Steven Mnuchin had proposed lifting some or all tariffs on China as a way to reassure markets and bolster the odds of a bigger trade deal.

But the article described the idea as part of a policy debate between Mnuchin and US Trade Representative Robert Lighthizer, who is more hawkish on China.

Among those shares that got a boost, Boeing, Caterpillar and General Motors gained at least 1 percent. All three depend on China for a significant portion of sales.

The US-China trade war has been among the biggest worries of investors, with headlines pulling shares in opposite directions on the real and perceived ups and downs of trade negotiations.

Elsewhere on the market, Morgan Stanley sank 4.4 percent after reporting fourth-quarter earnings of 80 cents per share, nine cents shy of analyst expectations, as it characterised the global environment as "uncertain."

But PPG jumped 4.8 percent as it reported better-than-expected fourth-quarter profits. The company said it was able to pass on higher materials costs by lifting prices. (AFP)