But he also said he had billions of dollars worth of new tariffs ready to be imposed if a deal was not possible.
The Trump administration has imposed tariffs on $250 billion worth of Chinese imports since July, while Beijing has retaliated with new levies on $110 billion of USA goods.
"I think we will make a great deal with China, and it has to be great, because they've drained our country", Trump said in an interview with Fox News host Laura Ingraham. Ten percent tariffs on $200 billion in imports that took effect in September are due to increase to 25% on 1 January.
The Dow Jones Industrial Average rose 431.72 points, or 1.77 percent, to 24,874.64, the S&P 500 gained 41.38 points, or 1.57 percent, to 2,682.63 and the Nasdaq Composite added 111.36 points, or 1.58 percent, to 7,161.65.
Stocks have plunged since early October, breaking a long period of relative calm over the summer, and trading has been especially volatile the last few days.
Tariff "wave" the stock market gains away.
The Japanese yen sank 0.4 percent to 112.79 per dollar. Microsoft ended down 2.9% at $103.85. The online retailer tumbled Friday after it reported weak sales and gave a lower-than-expected revenue estimate for the quarter that includes the holiday shopping season.
Tech Giants Including Google, Facebook & Amazon Face UK Digital Services Tax
The tax will be created to ensure established tech giants, rather than start-ups, shoulder the burden, Hammond told parliament. Facebook earlier this month said its British tax bill tripled to £15.8 million a year ago compared with £5.1 million in 2016.
Japan denounces South Korean court ruling on wartime forced labour
He said it was significant that the ruling upheld a 2012 verdict that Japan's occupation of the peninsula was illegal. Tuesday's ruling came more than five years after the company appealed the High Court decision in August 2013.
Google's homepage gets a new look as Discover rolls out on mobile
As I highlighted at Google's 20th anniversary event last month, Google is remaking search across the board. Google has started rolling out its new Discover feed to US users visiting google.com on a mobile device.
Meanwhile, Gao Feng, a spokesperson for China's Ministry of Commerce, said at a regular press briefing last Thursday that China had always been honest about trade talks with the US.
US stocks ended a tumultuous day sharply higher, with all major averages rising at least 1.4 percent as volatility continues to grip equity markets during earnings season.
The kiwi traded at 65.46 USA cents from 65.27 U.S. cents at 8am and 65.32 cents yesterday. Experts say it was hurt by one-off factors like new emissions standards for cars, so growth is likely to pick up again.
"And I have $267 billion waiting to go if we can't make a deal", Trump said.
Stocks in Asia were poised for a muted start Thursday after global equities rallied on the final two days of what was still their worst month in more than six years.
Broad gains in the U.S. equity market boosted a measure of global stock markets on Tuesday after President Donald Trump said a "great deal" could be struck with China that would relieve fears of a growing trade war between the world's two largest economies.