SINGAPORE (Reuters) -U.S. President Donald Trump held talks with China's Xi Jinping at a South Korean air base on Thursday, with both leaders sounding optimistic about cooling trade tensions between the world's two largest economies.

Market reaction was fairly muted as investors awaited further details of any agreement with Chinese stocks holding steady near a 10-year peak.

Here are some comments from market analysts and investors:

TARECK HORCHANI, HEAD OF DEALING, PRIME BROKERAGE, MAYBANK SECURITIES, SINGAPORE:

"The U.S.-China trade truce is likely to be greeted as a relief rally rather than a structural reset. When such truces occur, one of the first areas both sides highlight is agriculture, a politically sensitive sector in the U.S. where farmers form a key constituency.

"Overall, this looks like a tactical pause rather than a strategic breakthrough, with underlying tensions in technology, supply chains and rare earths still unresolved."

DICKIE WONG, HEAD OF RESEARCH, KINGSTON SECURITIES, HONG KONG:

"I don't see there's any major optimistic surprise at this point, both for the markets and the U.S.-China talks. It's still that same question - after the meeting ends, does it really mean the two countries will have a joint statement, and then the U.S. will roll back all tariffs on China, drop tech curbs, and China will export rare earths again? I don't see any possibility.

"The markets have already priced in much of the positives and there could be an 'anti-climax' development."

MUHAMMAD SAIFUDDIN BIN SAPUAN, ECONOMIST, KENANGA INVESTMENT BANK, KUALA LUMPUR:

"I think this is a tactical pause rather than a structural shift as both likely aim to ease tensions. But the truce will help stabilise global sentiment and trade expectations in the short term, which offers a relief for global demand and supply chain.

"Nevertheless, we still think that structural decoupling between the U.S. and China will continue to shape the long-term outlook."

(Reporting by Yantoultra Ngui in Singapore, Jiaxing Li in Hong Kong; Editing by Lincoln Feast.)