Introduction: Inventory markets cheer US-Japan commerce deal
Good morning, and welcome to our rolling protection of enterprise, the monetary markets and the world economic system.
Monetary markets are cheering the information that Donald Trump has introduced a commerce cope with Japan.
Shares are surging in Tokyo, the place the Nikkei index has jumped by 3.75% and the broader Topix has rallied by 3.55%.
Different markets throughout Asia-Pacific are additionally greater, whereas the reduction rally may drive Britain’s FTSE 100 to a brand new report excessive when buying and selling begins.
Nikkei jumps and Yen positive factors as #Japan’s belongings get pleasure from reduction from US commerce settlement. The headline 15% reciprocal tariff is a substantial low cost from the 25% within the letter earlier this month. Toyota shares rising as a lot as 10% after NHK reported the US would impose a tariff… pic.twitter.com/Mi24v5uME8
— Holger Zschaepitz (@Schuldensuehner) July 23, 2025
Underneath the deal, Japanese items will incur a 15% tariff on the US border, beneath the 25% stage which Trump had threatened to impose from 1 August earlier this month (however nonetheless above Trump’s ‘baseline’ tariff of 10%)
Asserting the deal, Trump declared on Reality Social:
We simply accomplished a large Take care of Japan, maybe the biggest Deal ever made. Japan will make investments, at my path, $550 Billion {Dollars} into the US, which is able to obtain 90% of the Earnings. This Deal will create Lots of of Hundreds of Jobs — There has by no means been something prefer it.
Maybe most significantly, Japan will open their Nation to Commerce together with Vehicles and Vans, Rice and sure different Agricultural Merchandise, and different issues.
The breakthrough is lifting hopes that extra nations will attain commerce offers with the US, and keep away from the hefty tariffs threatened by Trump
Tony Sycamore, market analyst at IG, explains:
Whereas the main points of the Japan commerce deal are nonetheless restricted and there could also be some disagreement from the Japanese facet, on face worth, the deal introduced this morning seems to be a constructive final result for markets total, as it’s nicely beneath the 25% stage beforehand threatened.
Moreover, this morning’s commerce cope with Japan turns into the sixth US commerce settlement in current months, following offers with Britain, Vietnam, the Philippines, Indonesia, and China. US Treasury Secretary Scott Bessent is scheduled to fulfill along with his Chinese language counterpart subsequent week to debate extending the August 12 deadline for tariffs on Chinese language imports. Reaching an settlement there would considerably assist to defuse the influence and reduce the significance of the August 1 deadline.
Commerce deal progress with the EU earlier than the August 1 deadline would make the date a non-event.
The agenda
9.30am BST: Supreme Courtroom to rule on enchantment in opposition to LIBOR and EURIBOR convictions of Tom Hayes and Carlo Palombo
Midday BST: US weekly mortgage approvals information
3pm BST: US new residence gross sales
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