FX.co ★ Japanese Shares Rally After US Trade Deal

The Nikkei 225 surged by 3.51%, closing at 41,171, while the Topix Index experienced an increase of 3.18%, reaching 2,926 on Wednesday. Japanese stocks soared to their highest in a year following the announcement by US President Donald Trump of a trade agreement between the US and Japan. This agreement includes a 15% tariff on Japanese exports to the United States. Trump also stated that Japan has pledged a $550 billion investment in the American economy and will open its markets to significant American products. This news ignited widespread gains across the board, with Japanese automakers at the forefront. Toyota Motor saw a remarkable jump of 14.3%, Honda Motor increased by 11.2%, and Nissan Motor rose by 8.3%. Strong performances were also observed in the financial, industrial, and consumer sectors, driven by optimism regarding enhanced trade relations. Conversely, technology stocks underperformed relative to the broader market, in line with losses experienced in US tech stocks the previous night. Concurrently, Prime Minister Shigeru Ishiba dismissed rumors suggesting he might resign depending on the results of the US-Japan trade discussions.