Japan's ruling coalition loses control of Upper House of parliament
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Business Times
15 minutes ago
- Business Times
Japan, EU pledge deeper economic, defense ties as US tariffs hit
[TOKYO] Japan and the European Union said they would deepen economic and defence industry cooperation as both parties navigate their relationships with the US and face challenges from China. In a statement released after a meeting between Japanese Prime Minister Shigeru Ishiba, European Commission President Ursula von der Leyen and European Council President Antonio Costa, the two sides said they would launch a 'competitive alliance' to support 'a stable and predictable rules-based fair and free economic order.' While neither side referred to US President Donald Trump's global tariff offensive, the announcement came hours after Tokyo confirmed it had reached a bilateral trade deal with Washington. That agreement eases a major concern for Japan's critical export sector. The outlook is less clear for the EU, which is engaged in intensive talks with the US to avoid a tariff rate of 30 per cent threatened by Trump on most of its exports to America, unless a deal can be reached by Aug 1. The EU-Japan statement highlighted shared interests and values but offered little detail beyond pledges to work closely together in areas such as supply chain resilience, countering economic coercion, cybersecurity and critical mineral supply including rare earth elements. No specific reference to China was made in the statement. The Japan-EU Economic Partnership Agreement, which entered into force in 2019 to lower trade barriers, will remain the cornerstone of bilateral trade relations, the two sides said. In one new initiative, the statement said a 'Japan-EU Defence Industry Dialogue' would be launched to foster cooperation in the defence industry, a field of growing importance as global defence budgets rise. Von der Leyen and Costa are scheduled to visit China on Thursday, where they are scheduled to meet Chinese Premier Li Qiang. BLOOMBERG
International Business Times
29 minutes ago
- International Business Times
Markets Rally on Surprise US-Japan Trade Deal; Investors Await EU Talks, Earnings Reports
Asian markets climbed after President Donald Trump said that he had struck a trade deal with Japan. The deal shrinks tariffs on Japanese auto exports to the U.S. from 25% to 15%, lifting sentiment. Japan's Nikkei index (.N225) jumped 3.2% to also close at a year high. Toyota's shares soared 15%, and Mazda's were up 17% on the news. The yield on the 10-year Japanese government bond rose 9 basis points, too, as diminished trade uncertainty appeared to open the possibility of interest rate increases by the Bank of Japan. Early gains for the Japanese yen reversed, with the dollar up 0.2% at 146.9 yen. That came after Prime Minister Shigeru Ishiba was reported to be considering resigning in the wake of his party's defeat in Sunday's upper house election. Freepik EU, South Korea, and China Join the Talks Hope for a wider trade resolution increased after South Korea said it would send officials to Washington for more trade talks. At the same time, EU representatives from 27 member nations planned to be in the U.S. on Wednesday to renegotiate. Optimism around a possible EU-U.S. deal sent European stock futures up 1.1%. American and Chinese officials will also meet in Stockholm next week to discuss extending the current deadline on tariffs. These are developments that market participants are monitoring very closely as they influence the global mood. Earnings tin Focus: Tesla, Alphabet, and the Tariff Effect Markets now turn their attention to second-quarter earnings reports. Alphabet and Tesla, two members of the "Magnificent 7" of tech stocks, will also report results today after the market close. Analysts are eager to hear how the companies are coping with higher tariffs and shifting global demand. Early signs are mixed. General Motors dropped 8.1% after reporting a $1 billion tariff-related loss in its most recent quarter. Investors have become more attuned to earnings for evidence of a wider economic slowdown or deeper fallout from Trump's trade policies. What's Next? Market direction is still uncertain, with more tariffs ahead and fresh corporate earnings on the schedule. Here's what you need to know at the end of the day. U.S.- EU TRADE TALKS E.U. Trade Commissioner Resigns Amid Inquiries Sabine Weyand, the bloc's deputy Brexit negotiator, said on Wednesday that the 30-member European Union was ready to discuss trade terms with the United States as well.
CNA
an hour ago
- CNA
David Boling on political uncertainty in Japan and US-Japan trade deal
Japanese Prime Minister Shigeru Ishiba has denied resignation rumours after an electoral blow, as US President Donald Trump announces a "massive" trade deal with Japan. CNA's Angela Lim speaks with David Boling, Director of Japan & Asian Trade at Eurasia Group.
