Rumbling on for nearly a year-and-half, the U.S.-China trade war that has dampened the global economy may be coming to an end.
Washington has reached a phase-one trade deal "in principle" with Beijing.
According to Bloomberg, citing sources familiar with the situation, U.S. President Donald Trump has signed off on the deal and an official announcement from the White House could come soon.
The report said the terms of the deal have been agreed but the legal text has not yet been finalized.
Reuters reported Beijing has agreed to buy 50 billion U.S. dollars of American agricultural goods in 2020 as part of the deal.
One expert says China might have agreed to this to prevent further tariffs from the U.S.
"Because agricultural goods play an important role in American exports, it must have meant a lot for the U.S. when China said they will buy their agricultural goods. In return, this means that their relationship is not going to get worse than it is and gradually the U.S. is likely to lower its tariffs."
He added that this deal will mean items such as semiconductors will see a price increase, which will particularly help South Korea's economy.
"The destination of most South Korean goods is China. So if China's trade with U.S. flourishes, so will China's imports from Korea."
The news caused South Korea's Credit Default Swap to reach its lowest on record on Thursday.
A lower Credit Default Swap means there is less risk of bankruptcy.
Meanwhile, U.S. stocks hit record highs on Thursday following the reports of a signed trade deal.
Both the S&P 500 and Nasdaq jumped nearly one percent and closed at all-time highs ending the day at 3,168 and 8,717 respectively.
The Dow Jones Industrial Average climbed more than 300 points at one point before coming down but still finished higher at 28,132.
Hong Yoo, Arirang News.