Stock markets rally after Japan-US trade deal
LONDON (AFP)Stock markets rose on Wednesday after Japan and the United States hammered out a trade deal to slash Donald Trump's tariffs, including those on the crucial car sector.Investors were also cheered by news that Washington had reached agreements with Indonesia and the Philippines, stoking optimism that other countries will also follow suit before Trump's August 1 deadline.London's FTSE 100 was up 0.5 percent, after hitting another record high at the open.Paris piled on one percent and Frankfurt also advanced, tracking gains in Asia.Tokyo surged over three percent after the US president announced a deal lowering tariffs on some Japanese goods to 15 percent, down from the threatened 25 percent.The deal will also reduce tolls on autos -- an accounting sector for eight percent of Japanese jobs -- to 15 percent, compared, with 25 percent for other countries. In return, Japan pledged to invest $550 billion in the United States, Trump said on social media.Shares in carmaker Toyota rocketed higher by more than 14 percent, Mitsubishi 13 percent and Nissan eight percent.European carmakers also rallied, with Porsche rising over seven percent, while Volkswagen and BMW were up around six percent in Frankfurt.In Paris, Stellantis topped the gainers on the CAC 40, advancing close to seven percent.Trump also hailed an agreement with Manila to lower levies on Philippine goods by one percentage point to 19 percent, while tariffs on Indonesia were slashed from 32 percent to 19 percent.Shares in Manila and Jakarta rallied.The announcements boosted hopes of other deals before next Friday's deadline, though talks with the European Union and South Korea remain elusive.Japan's 10-year government bond yield soared to the highest since 2008. Elsewhere in Asia, Hong Kong hit its highest level since late 2021, while Shanghai was flat.The advances came after a broadly positive day on Wall Street where the S&P 500 hit another peak but the Nasdaq snapped a six-day streak of records.
Eyes are also on the release of earnings from Google parent Alphabet and tech giants, including Tesla and Intel.
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