China's producer deflation deepened to its worst level in almost two years in May while consumer prices extended declines, as the economy grappled with trade tensions and a prolonged housing downturn.

Asian shares are mostly higher as investors keep an eye on China-U.S. trade talks that might help stave off a recession.

Inflation in the U.S. has been surprisingly tame despite the ongoing trade wars, but economists widely expect some increase. Just how much - and for how long - well, there's far less agreement about that.

The United States is looking to restore the flow of “crucial” rare earth minerals, which were restricted after China’s retaliatory efforts in early April.

Wall Street investors closely monitoring trade discussions between the US and China drove stocks higher as Commerce Secretary Howard Lutnick said negotiations went really, really well. Treasuries and the dollar saw small moves ahead of a key inflation report.

One expert said he expected loosened controls on U.S. exports of semiconductors in exchange for China's releasing of more rare earths.

Economists and some business executives have warned that prices will likely head higher as Trump’s widespread tariffs take effect, though the timing and impact of those duties are now in doubt

A strong jobs report on Friday added more fuel to a rally that has lifted the S&P 500 to within 2.4% of its all-time high.