The world's two largest economies are in talks on an initial deal to end an 18-month dispute that has damaged supply chains and upset global markets.

Washington is meanwhile due to impose a new round of tariffs on Chinese goods from December 15.

A lack of clear news on the progress of talks has not deterred investors emboldened by a growing sense that risks of a recession, a spectre through the year, have receded.

Looser monetary policy from major central banks like China has also helped bolster expectations for equities.

The MSCI world equity index, which tracks shares in 47 countries, gained 0.1 per cent on Tuesday to touch its highest since January last year.

European shares also moved up, with the broad Euro STOXX 600 adding 0.4 per cent to move to its highest since July 2015. Indexes in Frankfurt and London gained 0.4 per cent and 0.5 per cent respectively.

Wall Street futures indicated a positive start, adding 0.2 per cent.

Investors said assumptions an initial trade deal would be reached outweighed creeping doubts on progress in talks stemming from a lack of clear news, with a growing sense of positive economic fundamentals ahead.

"Consensus is assuming there will be a cyclical upturn," said Stephane Barbier de la Serre at Makor Capital Markets.

"It's like the market lowered its guard on the big risk metrics and that has triggered a reweighting of funds from bonds to equities."

Hopes Beijing will deliver some economic stimulus in addition to Monday's surprise cut to a closely watched lending rate provided a boost to sentiment in Asian markets.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6 per cent with Shanghai blue chips gaining 1 per cent and Hong Kong's Hang Seng up 1.4 per cent.

On the trade front, CNBC had overnight reported the mood in Beijing was pessimistic about prospects of sealing a trade agreement with the US, buffeting the dollar.

But signs suggested growing detente between the sides clouded the picture: a new extension granted by Washington to let US companies keep doing business with Chinese telecoms giant Huawei suggested a possible olive branch.

That lack of clarity did unnerve some investors.

The listless mood in share markets was reflected by tepid moves among major currencies.

The dollar stabilised against a broad basket of other currencies after three consecutive days of losses, with investors awaiting the release of the minutes of the US central bank meeting at end-October when policymakers had cut interest rates.

The dollar index against six major currencies was little changed at 97.807, close to a two-week low after weakening 0.6 per cent in the last three days.

The British pound settled at $1.2953 after hitting a one-month high overnight as opinion polls showed Prime Minister Boris Johnson's Conservative Party on course for victory at the December 12 election.

In commodities, crude futures fell, losing 0.2 per cent to $US62.29 a barrel, with a combination of jitters over trade and expectations of a rise in US inventories jangling nerves.

Australian Associated Press