Increased tariffs between the two countries on Friday had markets tumbling however optimism around a possible trade deal has emerged, with US president Donald Trump tweeting "great respect for the fact that President Xi and his representatives want ‘calm resolution'," adding talks were continuing.

Australian gold miners, which yesterday occupied the top five market risers' spots on the benchmark S&P/ASX200, were this afternoon among those posting the biggest declines.

Northern Star Resources (ASX: NST), which was up about 8.6% at this time yesterday, was down 7.5%.

It today announced a 20% drop in statutory net profit to A$155 million, due to its Pogo acquisition which had contributed to a 45% revenue increase, and plans to takeover Echo Resources to consolidate its holdings on the Yandal greenstone belt in Western Australia.

The gold price remains well above US$1,500 an ounce, trading above $1,527/oz on the spot market.

Among the diversified miners, Teck Resources (TSX: TECK.B) closed 2.2% higher yesterday and BHP (ASX: BHP) was up 0.7% in afternoon trade.

North American and European market indices closed higher yesterday, while London was closed for a summer bank holiday.

Market futures were mixed.