TOKYO (AP) — Asian shares rallied on Wednesday, with Tokyo’s benchmark Nikkei 225 index up 3.5% after Japan and the U.S. announced a deal on President Donald Trump’s tariffs.
The agreement as announced calls for a 15% import duty on goods imported from Japan, apart from certain products such as steel and aluminum that are subject to much higher tariffs. That’s down from the 25% Trump had said would kick in on Aug. 1 if a deal was not reached.
“This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it,” Trump posted on Truth Social, noting that Japan was also investing “at my direction” $550 billion into the U.S. He said Japan would “open” its economy to American autos and rice.
Japan’s benchmark Nikkei 225 gained 3.5% in afternoon trading to 41,171.32.
Hong Kong’s Hang Seng jumped 1.4% to 25,470.25, while the Shanghai Composite index was little changed, gaining less than 0.1% to 3,582.30.
Australia’s S&P/ASX 200 edged up 0.7% to 8,737.20 and the Kospi in South Korea edged 0.4% higher to 3,183.77.
“President Trump has signed two trade deals this week with the Philippines and Japan which is likely to keep market sentiment propped up despite deals with the likes of the EU and South Korea remaining elusive, for now at least,” Tim Waterer, chief market analyst at Kohle Capital Markets, said in a report.
There was a chorus of no comments from the Japanese automakers, despite the latest announcement, including Toyota Motor Corp., Honda Motor Co and Nissan Motor Corp.
Japanese companies tend to be cautious about their public reactions, and some business officials have privately remarked in off-record comments that they hesitate to say anything because Trump keeps changing his mind.
The Japan Automobile Manufacturers’ Association also said it had no comment, noting there was no official statement yet. Japan’s Prime Minister Shigeru Ishiba welcomed the agreement as beneficial to both sides.
Toyota stock jumped 14% in Tokyo trading, while Honda was up nearly 11% and Nissan added 8%. In other sectors, Nippon Steel, which is acquiring U.S. Steel, rose 2.4% while video game maker and significant exporter Nintendo Co. added 0.7%. Sony Group surged 4.6%.
Wall Street inched to another record on Tuesday following some mixed profit reports, as General Motors and other big U.S. companies gave updates on how much Trump’s tariffs are hurting or helping them.
The S&P 500 added 0.1% to the all-time high it had set the day before, closing at 6,309.62. The Dow Jones Industrial Average rose 0.4% to 44,502.44. The Nasdaq composite slipped 0.4% from its own record, to 20,892.68.
So far, the U.S. economy seems to be powering through the uncertainty created by Trump’s on-and-off tariffs. Many of Trump’s proposed taxes on imports are currently on pause, and the next big deadline is Aug. 1. Talks are underway on possible trade deals with other countries that could lower the stiff proposals before they kick in.
Trump said he reached a trade agreement with the Philippines following a meeting Tuesday at the White House, that will see the U.S. slightly drop its tariff rate for the Philippines without paying import taxes for what it sells there.
In the bond market, Treasury yields sank as traders continue to expect the Federal Reserve to wait until September at the earliest to resume cutting interest rates.
The yield on the 10-year Treasury eased to 4.34% from 4.38% late Monday.
In other dealings early Wednesday, U.S. benchmark crude oil gained 15 cents to $65.46 a barrel. Brent crude, the international standard added 16 cents to $68.74 a barrel.
In currency trading, the U.S. dollar rose to 146.78 Japanese yen from 146.64 yen. The euro cost $1.1740, down from $1.1754.
