U.S. President Donald Trump received a royal welcome on Monday in Japan, on the next leg of his Asia trip, which he hopes to cap with an agreement on a trade war truce with Chinese President Xi Jinping.

Trump, making his longest journey abroad since taking office in January, announced a flurry of deals on trade and critical minerals with four Southeast Asian nations during the first stop in Malaysia and is set to meet Xi in South Korea on Thursday.

Negotiators from the world's top two economies hashed out a framework on Sunday for a deal to pause steeper American tariffs and Chinese rare earths export controls, U.S. officials said. The news sent Asian stocks soaring to record peaks.

"I've got a lot of respect for President Xi and I think we're going to come away with a deal," Trump told reporters on Air Force One en route from Malaysia, where comments from U.S. and Chinese negotiators raised hopes of an accord.

Wearing a gold tie and blue suit, Trump gave a few fist pumps before his helicopter whisked him off for a scenic night tour of Tokyo, several of its towers lit up in the red, white and blue of the American flag.

He later headed in a long motorcade to the Imperial Palace, where he shook hands and posed for photographs with Japanese Emperor Naruhito.

Trump has already won a $550-billion investment pledge from Tokyo in exchange for respite from punishing import tariffs.

Commerce Secretary Howard Lutnick and Japanese counterpart Ryosei Akazawa, architects of the tariff deal agreed in July, discussed power grids as being a potential investment area over a sushi lunch in Tokyo earlier on Monday, local media reported.

Japan's newly elected prime minister, Sanae Takaichi, is hoping to further impress Trump on Tuesday with promises to purchase U.S. pickup trucks, soybeans and gas, and announce an agreement on shipbuilding, sources with knowledge of the plans told Reuters.

Takaichi, who became Japan's first female premier last week, told Trump that strengthening their countries' alliance was her "top priority" in a telephone call on Saturday.

Trump said he was looking forward to meeting Takaichi, a close ally of his late friend and golfing partner, former Prime Minister Shinzo Abe, referring to the assassinated former premier, adding: "I think she's going to be great."

Thousands of police are guarding Tokyo. A knife-wielding man was arrested on Friday outside the U.S. embassy and an anti-Trump protest is planned in downtown Shinjuku.

Trade, security on agenda

Trump was the first foreign leader to meet Naruhito after he came to the throne in 2019, continuing an imperial line that some say is the world's oldest hereditary monarchy.

Naruhito's role, however, is purely symbolic, and the key diplomacy will take place with Takaichi on Tuesday.

Trump and Takaichi are set to meet at the nearby Akasaka Palace, where he met Abe six years ago, and will be welcomed by a military honour guard. Among the investment pledges, the two countries will sign a memorandum of understanding on Tuesday on investment in shipbuilding, a source with knowledge of the plans said.

Takaichi is also expected to reassure Trump that Tokyo is willing to do more on security after telling lawmakers on Friday she plans to accelerate Japan's biggest defense buildup since World War II.

Japan hosts the largest concentration of U.S. military power abroad. Trump has said previously Tokyo is not spending enough to defend its islands from an increasingly assertive China.

While Takaichi has said she will speed plans to boost defense spending to 2% of GDP, she may struggle to commit Japan to any further increases that Trump seeks, as her ruling coalition does not have a majority in parliament.

All eyes on Trump-Xi meeting

Trump is due to leave on Wednesday for Gyeongju in South Korea, where he will hold talks with President Lee Jae Myung. Bessent told reporters the overall framework of a deal with South Korea was also done but would not be finalized this week.

Thursday's expected meeting with Xi will come after Washington and Beijing have raised tariffs on each other's exports and threatened to halt trade involving critical minerals and technologies.

That will be their first face-to-face talks since the 79-year-old Republican's return to the White House.

Neither side expects a breakthrough that would restore the terms of trade that existed before Trump's return to power.

Before Trump's arrival in Malaysia, Bessent and China's Vice Premier He Lifeng held two days of trade talks to prepare for the leaders' meeting.

China's vice commerce minister, Li Chenggang, said a "preliminary consensus" had been reached.

Bessent said on Air Force One on Monday that they had agreed "a framework for President Trump (and) President Xi to decide."

"It's going to be great for China, great for us," Trump told reporters in Kuala Lumpur.