US President Donald Trump has begun the final leg of his Asia trip in South Korea, optimistic about striking a trade war truce with Chinese President Xi Jinping and advancing an unresolved tariff deal with South Korea's Lee Jae-myung.

Arriving from Tokyo hours after North Korea test-fired a nuclear-capable cruise missile, Trump is due to meet Lee on Wednesday in Gyeongju, which is hosting the Asia-Pacific Economic Co-operation forum, before Thursday's talks with Xi.

Speaking to reporters aboard Air Force One, Trump dismissed the North Korea missile test and said he was focused squarely on his meeting with the leader of the world's second-largest economy.

"The relationship with China is very good. So I think we're going to have a very good outcome for our country and for the world, actua

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