FX.co ★ Japanese Shares Rally After US Trade Deal

On Wednesday, the Nikkei 225 and Topix indices saw a notable uptick of nearly 2%, with the Topix reaching its highest levels in a year. This surge came on the heels of an announcement by US President Donald Trump regarding a new trade deal between the United States and Japan. The agreement includes the imposition of a 15% tariff on Japanese exports destined for the US. Additionally, President Trump disclosed that Japan plans to invest $550 billion in the US and will open its markets to significant American products. This announcement prompted widespread gains, predominantly in the automotive sector, where Japanese automakers made significant strides. Toyota Motor surged by 9.8%, Honda Motor increased by 8.8%, and Nissan Motor rose by 9%. Gains were also observed in financials, industrials, and consumer stocks, buoyed by positive sentiments around enhanced trade relations. Conversely, technology shares underperformed in comparison to the broader market, mirroring losses experienced by US tech stocks the previous night. Furthermore, there were reports suggesting that Prime Minister Shigeru Ishiba is considering resigning, depending on the results of the ongoing tariff negotiations.