Most Asian markets rose on Friday as traders overcame early jitters about the China-US trade talks that were fueled by a report saying Beijing officials had raised doubts about the chances of a long-term deal.

Investors were also spooked by a speech by Secretary of State Mike Pompeo, in which he called China “truly hostile” to the US, leading Beijing to accuse the White House of “viciously” attacking it.

The flare-up comes just as the two sides put the finishing touches to a mini trade pact that is seen as the first phase of a wider agreement, with top-level phone talks due to take place later Friday.

Recent signs of progress in the long-running dispute have provided some much-needed support to equity markets in recent weeks, with most markets posting some healthy gains.

Wall Street, where the S&P 500 had hit a record high Wednesday, turned lower after Bloomberg News reported that Chinese officials were skeptical they would be able to reach a comprehensive long-term deal.

It said they warned they would not budge on key issues, while they were also concerned about Donald Trump’s impulsiveness and were even worried about the chances of getting the current agreement finished.

“The article proved a not-too-subtle reminder of how quickly trade war sentiment can pivot and highlighting those fears that we all knew about but were perhaps was too wrapped up (in) the phase one euphoria to recognize,” AxiTrader’s Stephen Innes said.

“Specifically, the trust gap is the bridge too far and what’s going on behind the shiny veneer of an apparent trade detente, the thorny Hong Kong protest bill,” he added, referring to US lawmakers passing a bill defending civil rights in the financial hub.

National Australia Bank’s Ray Attrill added that expectations would be low for anything past phase one being agreed ahead of the 2020 presidential election.

“Yet some market participants evidently held the view that passage of phase one could quickly lead to progress on phase two next year,” he said.

Also Thursday, Pompeo hit out at China’s clampdown on Hong Kong protests and its incarceration of Uighur Muslims, and said Beijing was seeking international domination. China responded by accusing the US of “arrogance and fear.”