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Saba Yemen
6 days ago
- Automotive
- Saba Yemen
Japanese Stocks Jump to Highest Level in Year Following Trade Deal with Washington
Tokyo - Saba: Japanese stocks jumped today, Wednesday, to their highest level in about a year after Japan concluded a trade agreement with the United States that reduces tariffs on its cars. The Nikkei index rose by 3.7% in today's trading, benefiting from the rise in shares of automobile manufacturers following news of an agreement that would reduce U.S. tariffs on cars to 15% from the proposed 25%. Mazda Motor shares rose by 17%, while Toyota Motor shares jumped by 13.6%. Shares of South Korean car manufacturers also rose, as the agreement with Japan boosted optimism regarding potential progress in tariff negotiations between South Korea and the United States. Japanese markets witnessed a strong rally today, Wednesday, with the Nikkei 225 index jumping by 3.7%, recording its highest level in months, supported by the performance of the automotive sector, which saw significant gains following the announcement of the trade agreement between Japan and the United States. This major surge came in the wake of the announcement of the details of the trade deal, which stipulates a reduction in U.S. tariffs on Japanese cars from the previously proposed 25% to only 15%. This news had an immediate impact on the shares of major Japanese automakers, with Mazda Motor shares soaring by a remarkable 17%, while Toyota Motor shares jumped by 13.6%. U.S. President Donald Trump announced the trade agreement with Japan last night, Tuesday, stating that it would lead to Japan investing $550 billion in the United States and paying tariffs of 15%. The U.S. President stated in a post on the 'Truth Social' platform that Japan will open up to trade, including cars, trucks, rice, and some agricultural products. Analysts pointed out that the trade agreement reduced risks that had threatened Japan's fragile economy, providing greater room for the Bank of Japan to raise interest rates to combat inflation. Whatsapp Telegram Email Print more of (International)
Time of India
7 days ago
- Business
- Time of India
Nikkei leads Asian gains: Japan-US trade deal sparks optimism; tariff ease boosts investor sentiment
Representative image (TOI) Asian markets surged on Wednesday, led by the rally in Japanese shares, after US President Donald Trump announced a trade deal with Japan that eased tariffs and boosted investor sentiments. Japan's Nikkei surged 2.6% on Wednesday, driven by a rally in automaker stocks after news that the auto tariff would be cut to 15% from a proposed 25%. Mazda Motor soared 17%, while Toyota rose 11%, reported the news agency Reuters. Meanwhile, Japanese government bonds fell, with 10-year yields jumping 8.5 basis points to 1.585%, as easing trade uncertainty opened the door for potential rate hikes by the Bank of Japan. The agreement includes a mellowed 15 percent tariff on Japanese exports to the US, as against the threatened 25 per cent. Trump announced the trade deal late on Tuesday. "We just completed a massive Deal with Japan, perhaps the largest Deal ever made," Trump announced on his Truth Social platform. "Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the profits," he added. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Many Are Watching Tariffs - Few Are Watching What Nvidia Just Launched Seeking Alpha Read More Undo Trump did not provide further details on the investment plan, but claimed the deal "will create hundreds of thousands of jobs." Sentiments were further lifted by the additional deals announced with Indonesia and the Philippines, raising optimism that other countries would soon reach an agreement soon, leading to a broader trade relief amid tariff tension. Manilla will have to pay a 19 percent tariff on exports to Washington. Tariffs on Indonesian exports were also cut, from 32 percent to 19 percent. "Expectations for a breakthrough were low, so Trump's announcement delivers a mild upside surprise - providing near-term relief for Japanese equities," said Charu Chanana, chief investment strategist at Saxo, reported news agency Reuters. "Strategically, the deal allows Japan to sidestep immediate tariff escalation, while Trump's attention shifts elsewhere," he added. Even as Trump's self-imposed August 1 deadline for trade deal nears with not many deals in the basket to show, the equity markets have been running high in recent weeks on the hope that countries would eventually reach an agreement before the time runs out. Japan had remained among the few major economies in finalizing a trade agreement, despite multiple visits to the US by trade envoy Ryosei Akazawa, a delay that had weighed on investor confidence in Tokyo. Yen saw a muted reaction, inching up just 0.1% to 146.42 per dollar. Market caution lingered as Prime Minister Shigeru Ishiba was reportedly weighing whether to step down, depending on the trade deal's impact, according to the Yomiuri newspaper, according to Reuters. President Trump also said that EU representatives would arrive Wednesday for trade talks. With the agreement on car shipments secured, PM Ishiba said, 'We are the first (country) in the world to reduce tariffs on automobiles and auto parts, with no limits on volume,' reported news agency AFP. While trade envoy Ryosei Akazawa posted on X - "Mission accomplished." However, he later clarified that the 50 percent tariffs on steel and aluminum were not included in the deal. Despite the deal, experts have issued caution. Stefan Angrick of Moody's Analytics warned it's 'unlikely to be the final chapter in a saga that has bruised Japan's economy,' reported AFP. 'Japan's apparent 'win' is not that clear-cut; the country faced US tariffs in the low single digits before April and a 10 percent tariff since mid-April. It's unclear when the new tariff rate will take effect,' he wrote. Angrick added, 'It's too early to assess the economic ramifications based on the superficial information available at the moment; the most that can be said at this point is that the 15 percent tariff is worse than what Japan had but better than what was threatened.' Meanwhile, US treasury secretary Scott Bessent announced plans to meet with his Chinese counterparts in Stockholm next week, ahead of a mid-August deadline when US tariffs on Beijing could increase again. While, across Asia, Hong Kong extended its 2025 rally to reach its highest level since late 2021. Other markets, including Shanghai, Sydney, Singapore, Taipei, Seoul, Mumbai, and Bangkok, also saw strong buying activity. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Yahoo
7 days ago
- Business
- Yahoo
Morning Bid: Surprise Japan trade deal gets others' hopes up
A look at the day ahead in European and global markets from Stella Qiu Just as U.S. corporate earnings are starting to show some negative impact from higher tariffs, President Donald Trump stole market attention by announcing a trade deal with Japan, pleasantly surprising investors. That had everyone hoping for more - certainly the prospects of an agreement between the U.S. and the European Union have improved now, with representatives from the 27-member bloc coming to Washington for more talks on Wednesday. European stock futures rose 1.1% as a result of the optimism. South Korea is studying the Japan deal as its officials fly to the U.S. for more trade talks. U.S. and Chinese officials are meeting next week in Stockholm to discuss an extension to the tariff deadline. The Japan deal included reduced 15% tariffs for auto exports to the U.S., down from 25% before. That lifted shares of Japanese automakers, with Toyota Motor jumping 15% and Mazda Motor rallying 17%. The broader benchmark Nikkei soared 3.2% to the highest in a year, while the benchmark 10-year Japanese government bond yield jumped 9 basis points as the reduced uncertainty helped to clear the path for the Bank of Japan to resume interest rate hikes. The dollar initially dipped against the yen but was last up 0.2% to 146.9 yen after the local Mainichi newspaper reported Prime Minister Shigeru Ishiba has made up his mind to resign following losses in Sunday's upper house election. Trade news aside, investors will be watching earnings reports later in the day from Tesla and Google's parent Alphabet, two of the Magnificent 7 stocks that have driven much of the market rally due to AI optimism. So far, U.S. earnings have been mixed as investors scrutinise them for any signs of a slowdown in the U.S. economy and impact from Trump's tariffs. General Motors tumbled 8.1% after the automaker reported a $1 billion hit from tariffs to its quarterly results. Key developments that could influence markets on Wednesday: - Eurozone consumer confidence flash for July - U.S. earnings from Alphabet, Tesla, IBM Sign in to access your portfolio
The Mainichi
7 days ago
- Automotive
- The Mainichi
Tokyo stocks surge over 3% in morning after Japan-US tariff deal
TOKYO (Kyodo) -- Tokyo stocks soared more than 3 percent Wednesday morning after U.S. President Donald Trump said he had struck a "massive" trade deal with Japan, with the reciprocal tariff reduced to 15 percent from 25 percent. The 225-issue Nikkei Stock Average rose 1,278.52 points, or 3.21 percent, from Tuesday to 41,053.44, after hitting a one-year intraday high. The broader Topix index was up 88.23 points, or 3.11 percent, at 2,924.42. All industry sectors advanced on the top-tier Prime Market, with gainers led by transportation equipment, bank and pharmaceutical issues. The U.S. dollar briefly weakened to the lower 146 yen range in Tokyo as the Japan-U.S. trade deal helped ease concerns over the prospects for the Japanese economy, boosting the yen. At noon, the dollar fetched 146.93-94 yen compared with 146.62-72 yen in New York and 147.71-73 yen in Tokyo at 5 p.m. Tuesday. The euro was quoted at $1.1734-1736 and 172.41-45 yen against $1.1750-1760 and 172.31-41 yen in New York and $1.1685-1687 and 172.61-65 yen in Tokyo late Tuesday afternoon. Stocks climbed across the board, with auto shares surging after reports that the U.S. tariff on automobiles, imposed since April, will be cut to 15 percent from 27.5 percent for Japanese cars. Among automakers, Toyota Motor ended the morning up 13.7 percent at 2,837.5 yen, while Mazda Motor surged 17.7 percent to 993.9 yen. "Since the Japan-U.S. tariff negotiations had been expected to be prolonged, the market reacted positively as the trade deal was announced relatively soon after the national election" on Sunday, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co. Despite the sharp advance, Ichikawa warned of the impact of a possible change in Japan's political situation on the market, with some expecting Prime Minister Shigeru Ishiba to resign after his ruling coalition suffered a major setback in the House of Councillors election.
Business Recorder
7 days ago
- Business
- Business Recorder
Nikkei surges in boost to Asia as Trump announces Japan trade deal
SYDNEY: A rally in Japanese shares led Asian markets on Wednesday after President Donald Trump announced a trade deal with Japan and fuelled hopes of more to come, tempering the disappointment from U.S. earnings that highlighted the drag from higher tariffs. Trump late on Tuesday said a trade deal with Tokyo will include Japan paying a lower 15% tariff on shipments to the U.S. It followed an agreement with the Philippines that will see the U.S. collect a 19% tariff rate on imports from there. 'Expectations for a breakthrough were low, so Trump's announcement delivers a mild upside surprise — providing near-term relief for Japanese equities,' said Charu Chanana, chief investment strategist at Saxo. 'Strategically, the deal allows Japan to sidestep immediate tariff escalation, while Trump's attention shifts elsewhere.' Japan's Nikkei jumped 2.6% on Wednesday as shares of automakers surged on news the deal lowers the auto tariff to 15%, from a proposed 25%. Mazda Motor rallied 17% while Toyota Motor jumped 11%. Japanese government bonds slid, with the yields for 10-year JGBs up a whopping 8.5 bps at 1.585%, as the reduced uncertainty helped to clear the path for the Bank of Japan to resume interest rate hikes. The reaction in the yen was more muted, eking out a small 0.1% gain to 146.42 per dollar . Traders are on edge as Japanese Prime Minister Shigeru Ishiba was planning to soon decide whether to step down after assessing the outcome of the trade deal, Yomiuri newspaper said. Trump also said representatives from the European Union are coming for trade negotiations on Wednesday. That stirred hopes for a deal with Europe, as markets were worried about broader EU countermeasures amid receding signs of a trade agreement with Washington. EUROSTOXX 50 futures rose 0.8%, while Wall Street futures , were up about 0.1%. In another positive development, U.S. and Chinese officials will meet in Stockholm next week to discuss an extension to the August 12 deadline for negotiating a trade deal, Treasury Secretary Scott Bessent said. Chinese blue-chips edged up 0.3% and Hong Kong's Hang Seng index gained 0.5%. MSCI's broadest index of Asia-Pacific shares outside Japanadvanced 0.6%. Overnight, Wall Street closed mixed as investors assessed a spate of earnings that pointed to signs that Trump's trade war is hitting corporate profit margins. General Motors tumbled 8.1% after the automaker reported a $1 billion hit from tariffs to its quarterly results. Shares of RTX dropped 1.6% after the aerospace and defense giant took a hit from tariffs despite strong demand for its engines and aftermarket services. Investors are now waiting for results from Tesla and Google's parent Alphabet the Magnificent 7 stocks that have driven much of the market rally fuelled by AI optimism. In the foreign exchange market, moves are a little muted with the dollar holding onto overnight losses along with lower Treasury yields. The dollar index was flat at 97.45, having slipped 0.4% overnight for its third straight day of declines. The euro dipped 0.1% to $1.1739 after rising 0.5% overnight. Benchmark 10-year U.S. Treasury yields ticked up 2 basis points to 4.3559%, after slipping 3 bps overnight, as Trump continued to lash out at Federal Reserve Chair Jerome Powell for not cutting interest rates, although Bessent said there was no need for him to step down immediately. Bessent did say the Fed's vital independence on monetary policy is threatened by its 'mandate creep' into non-policy areas and he called on the U.S. central bank to conduct an exhaustive review of those operations. Oil prices gained a little on Wednesday. U.S. crude rose 0.4% to $65.60 per barrel, while Brent was at $68.88 per barrel, up 0.4%. Spot gold prices were steady at $3,429 an ounce.
