Japan’s Nikkei Surges Over 3% After Tariff Deal
Asian markets rally as Tokyo’s Nikkei 225 index jumped more than 3% on news of a new U.S.-Japan trade agreement. The deal significantly reduced planned tariffs on Japanese goods, boosting investor confidence across the region.
Instead of the expected 25% tariff, imports will now face a 15% duty. However, high tariffs remain for steel and aluminum. President Trump announced the agreement, saying it would bring jobs and investment to the U.S.
He claimed Japan will invest $550 billion into the American economy and open its markets to U.S. rice and autos.
Other Asian Indexes Rise Alongside Tokyo
Following the announcement, Hong Kong’s Hang Seng rose 1.1%, while Shanghai’s index gained 0.8%. Australia’s ASX 200 rose 0.6%, and South Korea’s Kospi edged 0.1% higher.
Analyst Tim Waterer said the Trump-Japan and Trump-Philippines deals support investor sentiment. However, trade discussions with the EU and South Korea are still pending.
Despite the positive news, Japanese automakers like Toyota, Honda, and Nissan declined to comment. Companies are cautious due to the unpredictable nature of Trump’s policy changes.
U.S. Markets Respond Cautiously to Trade Developments
Wall Street also reacted, with the S&P 500 hitting a new record, rising 0.1%. The Dow Jones gained 0.4%, but the Nasdaq slipped 0.4%.
General Motors reported better-than-expected profits but warned of a $4–$5 billion impact from tariffs this year. Meanwhile, homebuilders like D.R. Horton and PulteGroup saw major gains after strong earnings.
While the Asian markets rally reflects global optimism, uncertainty still surrounds U.S. tariffs. More trade deals are being negotiated ahead of the next deadline on August 1.
Oil prices rose slightly, and Treasury yields fell as traders await signals from the Federal Reserve. The dollar edged higher against the yen, while the euro dipped slightly.
