Stocks surged early Monday following news that the U.S. and China had agreed to a 90-day pause in their ongoing trade conflict. As part of the deal, both nations will roll back most of the tariffs that economists had warned might trigger a recession and lead to product shortages in American stores.

The 90-day pause is a major de-escalation in the tariff war and comes after talks between both countries in Geneva.

Asian stocks saw muted trade as investors sought clarity following a US market surge that erased year-to-date losses, fueled by indications of receding trade tensions and milder-than-anticipated US inflation data.