Asian Stocks Rise After US-Japan Trade Deal
Asian stocks opened higher after US President Donald Trump declared a major trade deal with Japan had been reached. The MSCI Asia Index rose 0.7%, while the Nikkei 225 index jumped 1.8%. In the US, S&P 500 futures rose 0.2%, following a record high reached last week. The US dollar weakened slightly, but the 10-year Treasury yield rose 1 basis point to 4.36%.
The agreement includes US$550 billion in Japanese investment in the US and a reduction in tariffs on Japanese imports from 25% to 15%. Trump called it the "biggest deal ever made," marking a change in course in the tariff war ahead of the August 1 deadline. Earlier on Tuesday, Trump also reached a 19% tariff deal with the Philippines.
The agreement was welcomed by the market as it removed tariff uncertainty for Japanese and US exporters, and provided positive sentiment for Asian stocks. According to Tim Waterer of KCM Trade, this tariff reduction strengthens market confidence that more countries will follow the Japan deal, easing global economic concerns.
Investors are also now focusing on the financial reports of major companies—including Tesla and Alphabet—on the sidelines of the upcoming trade talks with China in Stockholm. Furthermore, the focus is also on the 40-year Japanese bond auction, which has become a new benchmark for assessing investor appetite amidst Japan's domestic political uncertainty.
Source: Newsmaker.id
