GENEVA — The United States and China have agreed to temporarily slash reciprocal tariffs in a deal that surpassed expectations as the world’s two biggest economies seek to end a damaging trade war that has stoked fears of recession and roiled financial markets.

Wall Street was on track to open with losses as the initial euphoria over the 90-day truce in the U.S.-China trade war faded.

U.S. stock index futures were flat on Wednesday, following a strong start to the week when a soft inflation reading and a U.S.-China trade truce lifted sentiment, with focus now on more developments around more trade deals.

Asia-Pacific markets were set to climb Wednesday, after Wall Street benchmarks mostly rose on easing U.S.-China trade tensions. Japan's benchmark Nikkei 225 is set to open higher, with the futures contract in Chicago at 38,365 while its counterpart in Osaka last traded at 38,300, against the index's last close of 38,183.26.

Questions about the longevity and future prospects of a U.S.-China trade deal gave gold a boost, with the front-month futures contract closing up 0.6% to $3,240.30 a troy ounce. "Despite the de-escalation in tensions between the U.

U.S. soybean exports may drop 20% and the prices paid to farmers will plunge if the United States and China fail to resolve their trade dispute limiting U.S. soybeans from their largest market, agribusiness consultants AgResource said on Wednesday.

Asia stock markets traded higher on Monday following substantial progress in U.S.-China trade talks on Sunday. Traders awaited further details from the negotiations, which were expected to be announced on Monday.

Asian shares are higher after two days of trade talks between China and the U_S_ made what the U_S_ side said was "substantial progress."