On Wall Street Target, Home Depot and Nike were among companies that saw their share price rise sharply on the news. Tech firms including Nvidia, Amazon, Apple and Facebook-owner Meta also moved sharply higher.
European stocks rose on Monday, and earlier Hong Kong's benchmark Hang Seng Index had ended the day up 3%.
The deal has boosted shares in shipping companies, with Denmark's Maersk up more than 12% and Germany's Hapag-Lloyd jumping 14%.
Maersk told the BBC the US-China agreement was "a step in the right direction" and that it now hoped for "a permanent deal that can create the long-term predictability our customers need."
In the US, the National Retail Federation (NRF) said it was encouraged by the "constructive" negotiations.
"This temporary pause is a critical first step to provide some short-term relief for retailers and other businesses that are in the midst of ordering merchandise for the winter holiday season," said NRF president Matthew Shay.
The International Chamber of Commerce said the deal sent a clear signal that the US and China both wanted to avoid a "hard decoupling".
"Ultimately, we hope this weekend's agreement lays the foundation to lift the cloud of trade policy uncertainty that continues to weigh on investment, hiring, and demand across the world," said deputy secretary-general, Andrew Wilson.
The gold price – which has benefited from its safe-haven status in recent weeks given the disruption caused by the tariffs – fell 3.1% to $3,223.57 an ounce.
