Latest news with #Toyota Motor
Yahoo
6 days ago
- Automotive
- Yahoo
Why Toyota Motor Rallied This Week
Key Points The U.S. and Japan struck a trade deal, resulting in a 15% tariff. The terms were much better than expected, so much so that U.S. carmakers complained. U.S. carmakers will have to pay even higher rates on imported input costs and components. 10 stocks we like better than Toyota Motor › Shares of Toyota Motor (NYSE: TM) rallied 11.8% this week, according to data from S&P Global Market Intelligence. Toyota didn't have any major company-specific news this week, as it doesn't report Q2 earnings until Aug. 7. However, there was big news on the trade front, with the Trump administration and Japan inking a trade deal that would put milder-than-expected tariffs on Japanese imports, including Toyota cars. Will recent tariffs actually give Toyota a leg up on U.S. automakers? On Tuesday, the Trump administration struck a trade deal with Japan, which would lower the threatened "Liberation Day" tariff rate from 24% to 15%. While that might not seem like that much of a decrease, cars are high-ticket items, so the new tariff duties could make thousands of dollars' difference to the end price consumers may have to pay. Even though it appears Toyota cars made abroad will face tariffs going forward, the stock went up anyway. Not only that, but U.S. carmakers complained to the administration that the lower rates now put them at a disadvantage. This is because even American automakers import some of their steel and aluminum, which will now be tariffed at 50%, while other components, even for U.S.-manufactured cars, are imported from overseas, and will also be tariffed. And while part of the Japan deal involves removing restrictions on U.S. exports to Japan, U.S. automakers don't appear to believe the deal will result in any new market share gains there. Will U.S. automakers benefit from the trade negotiations? Toyota is the second-largest carmaker in the world, both in terms of global and U.S. market share, so the all-important final tariff figure could have significant consequences for U.S. auto markets. There are a lot of moving parts with regard to tariffs, however, as Toyota makes cars all over the world, with inputs and other sub-components also coming from various places. To further grasp the total consequences of the deal, investors in either Toyota stock or the "Big Three" U.S. carmakers should keep their ears out for more clarity when Toyota reports earnings in August. Should you invest $1,000 in Toyota Motor right now? Before you buy stock in Toyota Motor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Toyota Motor wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,942!* Now, it's worth noting Stock Advisor's total average return is 1,040% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Toyota Motor Rallied This Week was originally published by The Motley Fool Sign in to access your portfolio
Irish Times
23-07-2025
- Automotive
- Irish Times
European stocks poised to surge as US-Japan trade deal struck
Japanese shares surged to a one-year high on Wednesday as the country struck a trade deal with the United States that lowers tariffs on its autos, while also reviving hopes for a EU-US agreement that boosted European stock futures. US president Donald Trump on Tuesday said a trade deal with Tokyo will include Japan paying a lower-than-threatened 15 per cent tariff on shipments to the US It followed an agreement with the Philippines that will see the US collect a 19 per cent tariff rate on imports from there. Mr Trump also said representatives from the European Union were coming for trade negotiations on Wednesday. That stirred hopes for a deal with Europe, even as the EU was reportedly refining countermeasures in case of a deadlock before the August 1 deadline. Stoxx 50 futures jumped 1.3 per cent, while Germany's DAX futures climbed 0.6 per cent. 'Expectations for a breakthrough (on the US-Japan talks) 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 bolted 3.7 per cent higher as shares of automakers surged on news the deal would cut the US auto tariff to 15 per cent, from a proposed 25 per cent. Mazda Motor rallied 17 per cent, while Toyota Motor jumped 13.6 per cent. South Korean automakers also rallied as the Japan deal fuelled optimism over potential progress in tariff negotiations between South Korea and the United States. Analysts noted the trade deal reduced a big risk to the fragile Japanese economy, providing more scope for the Bank of Japan to raise interest rates to fight inflation. That slugged the bond market, with yields for 10-year JGBs rising a whopping 8.5 basis point to 1.585 per cent. In another positive development, US and Chinese officials will meet in Stockholm next week to discuss an extension to the August 12th deadline for negotiating a trade deal, US treasury secretary Scott Bessent said. Chinese blue-chips rose 0.7 per cent and Hong Kong's Hang Seng index gained 0.8 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan added 1.0 per cent. Wall Street was more restrained with S&P 500 futures up 0.2 per cent, while Nasdaq futures added 0.1 per cent. US corporate earnings reports were showing signs that Mr Trump's trade war was hitting profit margins. General Motors tumbled 8.1 per cent after the automaker reported a $1 billion hit from tariffs to its quarterly results. Investors are now awaiting results from Tesla and Google's parent Alphabet – two of the Magnificent 7 stocks that have driven much of the market rally fuelled by AI optimism. In the foreign exchange market, the dollar consolidated having slipped overnight in line with Treasury yields. The dollar index was a shade firmer at 97.45, after losing 0.4 per cent on Tuesday in its third session of declines. The euro dipped 0.1 per cent to $1.1737, after rising 0.5 per cent the previous day. The European Central Bank is expected to hold rates steady on Thursday after eight consecutive rate cuts, with the prospect of steeper-than-expected US tariffs looming. – Reuters (c) Copyright Thomson Reuters 2025
CNA
23-07-2025
- Automotive
- CNA
Japan's Nikkei soars to one-year peak on trade deal; bonds slide
TOKYO :Japanese automakers led a surge in the Nikkei share average to a one-year peak on Wednesday, after Tokyo reached a trade deal with Washington, ending a months-long stalemate. Under the agreement, Japanese exports to the United States face a 15 per cent levy, down from a threatened tariff of 25 per cent. Specific duties on autos, which account for more than a quarter of Japan's U.S. exports, also fell to 15 per cent from 25 per cent. The Nikkei rallied 3.5 per cent to end the day at 41,171.32, its highest close since July last year. The Tokyo Stock Exchange's transport equipment index soared nearly 11 per cent, with Toyota Motor surging more than 14 per cent. The clarity on tariffs bolstered the case for the Bank of Japan to resume raising interest rates, lifting short-term Japanese government bond yields. Longer-term JGB yields also climbed, with local media reporting that embattled Prime Minister Shigeru Ishiba was preparing to step down, suggesting a shift in the political landscape towards increased fiscal largesse. Ishiba has denied the reports. The 10-year yield shot to the highest since 2008 at 1.6 per cent, while a 40-year debt auction garnered the lowest demand since 2011. The yen weakened about 0.3 per cent to 147.02 per dollar after initially flipping between gains and losses. "As long as the political situation doesn't deteriorate too much more, we suspect Japan's equity rally has further to run," Capital Economics head of Asia Pacific markets Thomas Mathews wrote in a note. For the rates market, "our sense is that investors are still underestimating how fast the central bank will hike this year and next," Mathews said. Ishiba is facing growing opposition from within his Liberal Democratic Party for his vow to stay in power despite the ruling coalition's drubbing in Sunday's election, which resulted in the loss of the coalition's upper house majority. Opposition parties calling for debt-funded consumption tax cuts made big gains at the polls. The yield on 40-year JGBs climbed 8.5 basis points to hit 3.46 per cent. Thirty-year yields advanced as much as 6.5 basis points to 3.15 per cent, approaching last week's all-time high of 3.20 per cent. Two-year yields, which are more sensitive to the monetary policy outlook, jumped 8 basis points to 0.83 per cent, the highest since April 2, when U.S. President Donald Trump shocked markets with his aggressive "Liberation Day" tariff announcement. Expectations for tighter monetary policy also lifted the TSE's banking index by 4.4 per cent, making it the second-biggest gainer among the bourse's 33 industry groupings. The central bank will meet on policy next week. BOJ Deputy Governor Shinichi Uchida said on Wednesday that the trade deal greatly reduces uncertainty over the economic outlook, but also warned that risks to activity and prices were skewed to the downside. "I don't think this (trade deal) alone will lead to a Bank of Japan rate hike next week, but the possibility of a rate hike between September and October has increased," said SMBC chief currency strategist Hirofumi Suzuki.
CNA
23-07-2025
- Automotive
- CNA
Nikkei, EU stocks surge as US-Japan trade deal avoids the worst
SYDNEY :Japanese shares surged to a one-year high on Wednesday as the country struck a trade deal with the United States that lowers tariffs on its autos, while also reviving hopes for a EU-US agreement that boosted European stock futures. President Donald Trump on Tuesday said a trade deal with Tokyo will include Japan paying a lower-than-threatened 15 per cent tariff on shipments to the U.S. It followed an agreement with the Philippines that will see the U.S. collect a 19 per cent tariff rate on imports from there. Trump also said representatives from the European Union were coming for trade negotiations on Wednesday. That stirred hopes for a deal with Europe, even as the EU was reportedly refining countermeasures in case of a deadlock before the August 1 deadline. EUROSTOXX 50 futures jumped 1.3 per cent, while Germany's DAX futures climbed 0.6 per cent. "Expectations for a breakthrough (on the U.S.-Japan talks) 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 bolted 3.7 per cent higher as shares of automakers surged on news the deal would cut the U.S. auto tariff to 15 per cent, from a proposed 25 per cent. Mazda Motor rallied 17 per cent, while Toyota Motor jumped 13.6 per cent. South Korean automakers also rallied as the Japan deal fuelled optimism over potential progress in tariff negotiations between South Korea and the United States. Analysts noted the trade deal reduced a major risk to the fragile Japanese economy, providing more scope for the Bank of Japan to raise interest rates to fight inflation. That slugged the bond market, with yields for 10-year JGBs rising a whopping 8.5 basis point to 1.585 per cent. There were also reports Japanese Prime Minister Shigeru Ishiba would soon step down to take responsibility for the ruling coalition's defeat in Sunday's upper house election. The political uncertainty reversed an early trade-inspired rise in the yen and helped the dollar nudge up 0.2 per cent to 146.95. Saxo's Chanana said Ishiba's departure could set the stage for leadership more aligned with pro-market policies and closer U.S. ties. "His exit is also seen as clearing a path for continuity in Japan's accommodative fiscal and monetary stance." EXTENDED DEADLINES 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 rose 0.7 per cent and Hong Kong's Hang Seng index gained 0.8 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan added 1.0 per cent. Wall Street was more restrained with S&P 500 futures up 0.2 per cent, while Nasdaq futures added 0.1 per cent. U.S. corporate earnings reports were showing signs that Trump's trade war was hitting profit margins. General Motors tumbled 8.1 per cent after the automaker reported a $1 billion hit from tariffs to its quarterly results. Investors are now awaiting results from Tesla and Google's parent Alphabet - two of the Magnificent 7 stocks that have driven much of the market rally fuelled by AI optimism. In the foreign exchange market, the dollar consolidated having slipped overnight in line with Treasury yields. The dollar index was a shade firmer at 97.45, after losing 0.4 per cent on Tuesday in its third session of declines. The euro dipped 0.1 per cent to $1.1737, after rising 0.5 per cent the previous day. The European Central Bank is expected to hold rates steady on Thursday after eight consecutive rate cuts, with the prospect of steeper-than-expected U.S. tariffs looming. Benchmark 10-year U.S. Treasury yields ticked up 2 basis points to 4.36 per cent, after slipping 3 bps overnight. While Trump continued to lash out at Federal Reserve Chair Jerome Powell for not cutting interest rates, Bessent said there was no need for Powell to step down immediately and could stay until next May if he chose. Investors have been worried the politicisation of the Fed could ultimately lead to rates being cut too far, fuelling inflation and pushing up long-term borrowing costs. In commodity markets, Spot gold prices eased a touch to $3,422 an ounce. Oil prices nudged higher, helped by rising prices for diesel in the U.S. where stockpiles are at their lowest levels for this time of the year since 1996.
Reuters
23-07-2025
- Automotive
- Reuters
Japan's Nikkei surges to one-year peak, bonds slide on US trade deal
TOKYO, July 23 (Reuters) - Japanese automakers led a surge in the Nikkei share average to a one-year peak on Wednesday, while bonds slid after Tokyo reached a trade deal with Washington, ending a months-long stalemate. The Nikkei (.N225), opens new tab rallied as much as 3.3% to 41,070.91, its highest since July last year. The Tokyo Stock Exchange's transport equipment index (.ITEQP.T), opens new tab soared 10.3%, with Toyota Motor (7203.T), opens new tab surging more than 13%. The trade deal reduced economic uncertainty, bolstering the case for the Bank of Japan to resume raising interest rates. Traders sold Japanese government bonds, pushing two-year yields up by 7 basis points (bps) to 0.82%, the highest since April 2, when U.S. President Donald Trump shocked markets with his aggressive "Liberation Day" tariff announcement. Markets largely shrugged off a media report that Japanese Prime Minister Shigeru Ishiba would step down by the end of August. Ishiba is facing growing opposition from within his Liberal Democratic Party for his vow to stay in power despite the ruling coalition's defeat in Sunday's upper house election. The yen was last down about 0.2% at 146.96 per dollar . Trump said on Tuesday the U.S. and Japan had struck a trade deal that includes a 15% tariff that will be levied on U.S. imports from the Asian country, down from a threatened tariff of 25%. Industry and government officials briefed on the agreement said the deal also lowers the tariff to 15% from 25% on Japanese autos, which account for more than a quarter of the country's exports to the U.S. "It is commendable that the 25% baseline tariff was avoided," said Norihiro Yamaguchi, senior Japan economist at Oxford Economics in Tokyo. "Lowered uncertainty will be welcomed in the equity market." Bank shares gained, sending the TSE's banking index (.IBNKS.T), opens new tab up 4.5%. The 10-year JGB yield jumped 9.5 bps to 1.595%, matching last week's 17-year high. Ten-year Japanese government bond futures tumbled as much as 1.04 yen to 137.56 yen, their lowest since March 28. Deputy BOJ Governor Shinichi Uchida said the central bank needs to focus on downside risks to the economy. His comments came ahead of a BOJ policy meeting next Wednesday and Thursday. "I don't think this (trade deal) alone will lead to a Bank of Japan rate hike next week, but the possibility of a rate hike between September and October has increased," said SMBC chief currency strategist Hirofumi Suzuki. "This will create pressure to buy the yen."
