Global markets rally following Trump's tariffs deal with Japan
France's CAC 40 added 1.4% in early trading to 7,854.75, while Germany's DAX gained 0.9% to 24,260.62. Britain's FTSE 100 rose 0.6% to 9,075.46. The future for the S&P 500 gained 0.4% while that for the Dow Jones Industrial Average was up 0.5%.
The tariff agreement as announced calls for a 15% U.S. import duty on goods 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 surged as much as 3.7%, closing at 41,171.32.
Hong Kong's Hang Seng jumped 1.6% to 25,538.07, 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 more than 11% and Nissan added 8%. In other sectors, Nippon Steel, which is acquiring U.S. Steel, rose 2.7% while video game maker and significant exporter Nintendo Co. added 0.7%. Sony Group surged 4.3%.
But Takeshi Niinami, chairman of the Japan Association of Corporate Executives, which groups about 1,600 top executives, issued a note of caution about the nation having to be resilient and pushing free trade, while welcoming the tariff deal.
'I hope this U.S.-Japan tariff deal can work as a starting point to further strengthen U.S.-Japan relations,' he said.
He noted the U.S. policy of putting America first was unlikely to change, and that meant Japan, too, must make policy adjustments, such as making an aggressive push in artificial intelligence.
Trump has also said that 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.
On Tuesday, the S&P 500 added 0.1% to Monday's all-time high. The Dow Jones Industrial Average rose 0.4%, while the Nasdaq slipped 0.4%.
Also early Wednesday, U.S. benchmark crude oil lost 23 cents to $65.08 a barrel. Brent crude, the international standard fell 21 cents to $68.38 a barrel.
The U.S. dollar fell to 146.38 Japanese yen from 146.64 yen. The euro cost $1.1736, down from $1.1754.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 minutes ago
- Yahoo
Fabrizio Romano confirms Alexander Isak wants DREAM Liverpool move
Liverpool could soon be welcoming Alexander Isak to the club. It's been an incredible summer in the transfer window for the Reds thus far. Richard Hughes has overseen an expert campaign - adding Florian Wirtz for a new British record fee and also bringing to the club Hugo Ekitike, Milos Kerkez, Jeremie Frimpong and Giorgi Mamardashvili. LFC Kits Shop Now LFC x New Era Shop Now LFC Signed Merch Shop Now LFC x Titleist Shop Now Liverpool are not standing still despite winning the 2024/25 Premier League title under Arne Slot and their squad is now looking better than ever. But there is even MORE to come. Not only could the Anfield club be active in their pursuit of a new centre-back, Isak is now firmly in their sights. Liverpool prepare British-record deal for Isak It would require another British record sum but Liverpool have got the means to complete this deal. Isak sent shockwaves through the football world earlier this week when it was revealed that he had turned down Newcastle's approaches over a new contract and instead wished to leave the club as soon as possible. The Sweden international failed to report for preseason duty on the Asian tour - nursing a minor thigh injury instead. Liverpool quickly emerged as frontrunners for the 25-year-old - despite already signing Newcastle's preferred Isak replacement in Ekitike. Isak turns down MAMMOTH Saudi bid The Geordies' Saudi owners were left aghast, with it suggested that they were trying to persuade Isak to join another PIF club in Al-Hilal instead. There have been reports of a gigantic £600k per week salary - FIVE times his current pay packet and roughly double what he is demanding on his next contract. But Isak's intentions are clear. He is not interested in the gargantuan riches on offer in the Saudi Pro League - according to the latest report from Fabrizio Romano. Instead he wants to mix it up at the sharp end of the Premier League with the best team in the country. Isak wants Liverpool, not a cash-grab. Liverpool will be Isak's priority says Romano "Alexander Isak says no to Saudi and new contract, priority Liverpool!' Romano stated on Threads. 'Isak has already turned down proposals from Saudi as there's nothing at all ongoing with Al Hilal at this stage. 'Eddie Howe has also confirmed there are no contract talks ongoing, the player's wish is to leave Newcastle. 'Nothing at all with Chelsea, Man United, Arsenal. 'The real club in concrete talks for Isak was, is and still remains Liverpool… depends on Newcastle now.' © IMAGO - Alexander Isak Liverpool
Newsweek
4 minutes ago
- Newsweek
Democratic Party Hits Lowest Approval in Over 30 Years: Poll
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. A Wall Street Journal poll published on Friday shows the Democratic Party's image has deteriorated to its lowest point in over three decades according to the newspaper's records that date back to 1990. Only 8 percent of registered voters said they view the Democratic Party "very favorably," while 63 percent said it's out of touch with the everyday concerns of Americans. In contrast, Republicans are now trusted more on key issues like the economy, immigration and crime. The poll, which surveyed 1,500 registered voters between July 16-20, found Republicans have taken the lead on eight of 10 issues tested. Despite President Donald Trump's continued unpopularity in the polls, the GOP leads in overall party identification. The Journal's poll has a margin of error of plus or minus 2.5 percentage points. Why It Matters In last year's presidential election, Trump beat then-Vice President Kamala Harris, the Democratic presidential nominee, by 2 points in the popular vote, 50 to 48 percent. Trump also won the electoral vote, which decides the winner, 312-226. The Democratic Party faced a string of defeats in the 2024 election cycle when it came to the U.S. House and Senate, with the party's struggles for a clear message and effective leadership intensifying as the 2026 midterm elections approach. The new poll signals a significant warning for Democrats. Although Trump remains a polarizing figure, the data suggests that voters are increasingly viewing the party as ineffective on core issues like inflation, border security, and crime. What To Know According to the Journal's poll, Democrats now face a net favorability of -30 points, with only one-third of voters expressing any positive sentiment toward the party. This marks the worst performance for Democrats in the newspaper's polling history to date. While Trump's handling of inflation and tariffs drew significant disapproval—11 and 17 points respectively—voters still trust Republicans more than Democrats to manage those issues in Congress. The GOP holds a 10-point advantage on inflation and a 7-point edge on tariffs. The only policy areas where Democrats outperform Republicans in the poll are health care and vaccine policy, suggesting the party retains some credibility on public health issues. The president's net unfavorability stands at -7 points, with the GOP slightly worse at -11. However, Trump's favorability has remained relatively steady through the first six months of his second term, even as other polls show sharper declines. Despite the negative sentiment, 46 percent of voters say they would back a Democrat for Congress if an election were held today, compared to 43 percent who would support a Republican. That margin is narrower than the 8-point advantage Democrats had at the same point in Trump's first term in 2017. Senate Minority Leader Senator Chuck Schumer, a New York Democrat, speaks as Senate Minority Whip Sen. Richard Durbin, an Illinois Democrat, and Senator Cory Booker, a New Jersey Democrat, listen during a news briefing at... Senate Minority Leader Senator Chuck Schumer, a New York Democrat, speaks as Senate Minority Whip Sen. Richard Durbin, an Illinois Democrat, and Senator Cory Booker, a New Jersey Democrat, listen during a news briefing at the U.S. Capitol on July 22 in Washington, D.C. MoreWhat People Are Saying Bill McInturff, a Republican pollster not connected to the Journal's survey, said: "We were already watching the tide moving out for the Republican Party by this point in 2017, and that's not where we are today. And that's worth jumping up and down and trying to explain: how much more competitive Trump and the Republicans are today than in 2017." John Anzalone, a Democratic pollster who worked on the Journal survey, said: "The Democratic brand is so bad that they don't have the credibility to be a critic of Trump or the Republican Party. Until they reconnect with real voters and working people on who they're for and what their economic message is, they're going to have problems." What Happens Next? Democrats face mounting pressure to redefine their economic message and rebuild trust with working-class voters. Meanwhile, Republicans are likely to double down on their perceived strengths in fiscal and foreign policy ahead of next year's midterms.
Associated Press
4 minutes ago
- Associated Press
$1 million In-Season Challenge prize sets up the Brickyard 400 for split-screen racing
INDIANAPOLIS (AP) — Brickyard 400 viewers will be tuning into pure split-screen racing Sunday. On one side, they'll monitor whether Kyle Larson can defend his Brickyard 400 title or if Denny Hamlin can charge from the back of the field to become the fifth driver to complete a career sweep of the Cup's four crown jewel races. On the other side, they'll see whether Ty Gibbs or Ty Dillon or collects the $1 million prize that goes to the first In-Season Challenge champion. And, fittingly, this March Madness-like tournament concludes on one of the sport's grand stages — Indianapolis Motor Speedway's historic 2.5-mile oval. It's a made-for-television moment. 'This is going to be a special moment no matter what happens,' Dillon said before qualifying started Saturday. 'I do, ultimately, want to win in the Cup series, and I hope (winning) feels as great as these five weeks have. I don't know how to compare it because it's the first time anybody has really gone through this round by round.' The concept comes straight out of Indiana's other favorite sport, basketball. Series officials wanted a solution for the series' midsummer blues and chose a combination of the NBA's In-Season Tournament and college basketball's single-elimination NCAA Tournament. Race results at Michigan, Mexico City and Pocono set up a 32-driver field. Head-to-head results in Chicago eliminated 16 drivers, which was down to the Elite Eight after Sonoma. Gibbs and Dillon advanced from last week's Final Four and now they are here in Indy, getting as much attention Larson, Hamlin and the array of other big-name drivers. Larson and Hamlin spoke with reporters Friday. Gibbs and Dillon waited until just before a brief, rescheduled practice session took place at Indy. 'This is race car country is what we would call it, so being able to race here is an honor,' Gibbs said. 'The main goal, of course, is to go win the race and we're going to do everything we can to put ourselves in position to do that, and maybe if we don't do that, try to finish as best we can and if that's better than (Dillon), we'll take it.' The championship looks like a classic between Dillon, a 12-year veteran who is winless in 266 career Cup starts, and Gibbs, the 2022 Xfinity Series winner in his third full Cup season and the grandson of three-time Super Bowl champion and team owner Joe Gibbs. Like so many NCAA Tournament brackets, the bracket results defied expectations. Gibbs went into the five-race challenge seeded No. 6. Dillon took on the role of Cinderella after starting No. 32. And Gibbs has an edge after qualifying fifth. Dillon starts 26th. Along the way some of the favorites such as Hamlin, William Byron, Chase Briscoe and Kyle Larson fell out. Hamlin, who is seeking his first Brickyard win in 17 starts, first introduced the notion of a tournament on his 'Actions Detrimental' podcast and gave the series good marks for how it's played out. 'I think you get more buy-in from drivers if, you know, they're financially motivated,' said Hamlin, who lost to Dillon in the first round. 'I know a lot of people kind of played it off this year, but everyone knew about it, everyone knew who they had to beat. Everyone did care about it. I feel like it was implemented fairly well this year.' Hamlin faces an even bigger hurdle after crashing hard in qualifying. He'll start 39th after Chase Briscoe claimed the pole. Now the question becomes who will take home the big prize? While Gibbs is trying to race his way into the playoffs and Dillon continues to chase his first Cup win, the two drivers also will be paying attention to the race inside Sunday's race. And so will the fans. 'It feels like the last three or four weeks, I've done enough media and talked to enough people and had fan growth like I've never seen before, that felt like I had won the last three weeks,' Dillon said. 'So it's a weird conundrum. It's not a win, but it has felt so special to be a part of.' Bubba's story When Bubba Wallace drove the No. 23 car onto the track for his qualifying run Saturday, he didn't have any expectations. When he climbed out of the car, he had the provisional pole and it stayed there — until Briscoe's late attempt. And while Wallace will start on the front row, he wasn't satisfied with how it played out. 'It's a weird feeling right now,' Wallace said. 'I had no idea what kind of lap I put together and obviously, man, so close. You know no one wants to finish second in motorsports or whatever it is. I sure don't want to. So if it's qualifying, it's a little kick in the groin but aside from that, a pretty good day.' Family celebration Briscoe's pole-winning run was the second leg of a celebratory weekend for his family, which still calls Mitchell, Indiana, home. That's about 85 miles southwest of Indy. The first part came Friday when Briscoe's sister got married. And Briscoe has a chance to complete the third leg by winning his first Brickyard title. But he's also wary about a potential sibling rivalry. 'I would love to cap it off with the Brickyard 400, but I'm sure my sister would be mad if I went and kind of topped the wedding,' Briscoe said. 'But, yeah, it's been a fun week to come up here and get to do all the things we've done.' Double duty After qualifying 38th for Sunday's race, Katherine Legge took a short break before jumping in her car for the start of the Xfinity race. The longtime IndyCar driver is doing double duty this weekend on a track she knows well. Legge has started four Indianapolis 500s, most recently in 2024. This season, she's made six starts on the stock car circuit — two in the Xfinity Series and four, so far, in the Cup Series. And on Sunday, she'll hit another milestone — becoming the 21st driver to compete in both the Indianapolis 500 and the Brickyard. Odds and ends Shane van Gisbergen will make his first career start on Indy's oval after qualifying 11th. ... Points leader Chase Elliott starts from the No. 30 spot on the grid. ... Despite the qualifying crash, Hamlin remained the betting favorite in Indianapolis with Larson and Briscoe not far behind, according to BetMGM Sportsbook. The trio has just one win on Indy's oval. ___ AP auto racing:
