European and Japanese Stocks Rise on US-Japan Trade Deal
European stocks opened sharply higher on Wednesday, with the Stoxx 600 index surging by more than 1%. This rise was led by shares of carmakers such as Mercedes-Benz, Volkswagen, and Porsche, which rose more than 5% following the trade deal between the US and Japan. Optimism grew that the automotive sector could face a milder-than-expected tariff impact.
Healthcare stocks also rallied as tariff concerns eased. However, the technology sector came under pressure, particularly after disappointing earnings reports from Dutch chipmaker ASM and German software giant SAP. The poor performance of these stocks weighed on national indices such as the AEX and DAX.
In the UK, the FTSE 100 index lagged behind other regional indices as bank and mining stocks weakened. This occurred amid waning investor interest in precious metals as a safe-haven asset, as overall market optimism increased.
In Asia, Japan's Nikkei index approached a record high after a trade deal with the US that imposed a 15% export tariff. Although Japanese car exports still face challenges, the weakening yen is a boon for exporters. A weaker yen increases the value of their overseas earnings in yen, strengthening the financial performance of manufacturers like Toyota and Honda. (ayu)
Source: Newsmaker.id
