Trump participates in energy and innovation summit in Pennsylvania
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Reuters
18 minutes ago
- Reuters
Nikkei surges in boost to Asia as Trump announces Japan trade deal
SYDNEY, July 23 (Reuters) - A rally in Japanese shares led Asian markets on Wednesday after President Donald Trump announced a trade deal with Japan and fuelled hopes of more to come, tempering the disappointment from U.S. earnings that highlighted the drag from higher tariffs. Trump late on Tuesday said a trade deal with Tokyo will include Japan paying a lower 15% tariff on shipments to the U.S. It followed an agreement with the Philippines that will see the U.S. collect a 19% tariff rate on imports from there. "Expectations for a breakthrough were low, so Trump's announcement delivers a mild upside surprise — providing near-term relief for Japanese equities," said Charu Chanana, chief investment strategist at Saxo. "Strategically, the deal allows Japan to sidestep immediate tariff escalation, while Trump's attention shifts elsewhere." Japan's Nikkei (.N225), opens new tab jumped 2.6% on Wednesday as shares of automakers surged on news the deal lowers the auto tariff to 15%, from a proposed 25%. Mazda Motor (7261.T), opens new tab rallied 17% while Toyota Motor (7203.T), opens new tab jumped 11%. Japanese government bonds slid, with the yields for 10-year JGBs up a whopping 8.5 bps at 1.585%, as the reduced uncertainty helped to clear the path for the Bank of Japan to resume interest rate hikes. The reaction in the yen was more muted, eking out a small 0.1% gain to 146.42 per dollar . Traders are on edge as Japanese Prime Minister Shigeru Ishiba was planning to soon decide whether to step down after assessing the outcome of the trade deal, Yomiuri newspaper said. Trump also said representatives from the European Union are coming for trade negotiations on Wednesday. That stirred hopes for a deal with Europe, as markets were worried about broader EU countermeasures amid receding signs of a trade agreement with Washington. EUROSTOXX 50 futures rose 0.8%, while Wall Street futures , were up about 0.1%. In another positive development, U.S. and Chinese officials will meet in Stockholm next week to discuss an extension to the August 12 deadline for negotiating a trade deal, Treasury Secretary Scott Bessent said. Chinese blue-chips (.CSI300), opens new tab edged up 0.3% and Hong Kong's Hang Seng index (.HSI), opens new tab gained 0.5%. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab advanced 0.6%. Overnight, Wall Street closed mixed as investors assessed a spate of earnings that pointed to signs that Trump's trade war is hitting corporate profit margins. General Motors (GM.N), opens new tab tumbled 8.1% after the automaker reported a $1 billion hit from tariffs to its quarterly results. Shares of RTX (RTX.N), opens new tab dropped 1.6% after the aerospace and defense giant took a hit from tariffs despite strong demand for its engines and aftermarket services. Investors are now waiting for results from Tesla (TSLA.O), opens new tab and Google's parent Alphabet (GOOGL.O), opens new tab - the Magnificent 7 stocks that have driven much of the market rally fuelled by AI optimism. In the foreign exchange market, moves are a little muted with the dollar holding onto overnight losses along with lower Treasury yields. The dollar index was flat at 97.45, having slipped 0.4% overnight for its third straight day of declines. The euro dipped 0.1% to $1.1739 after rising 0.5% overnight. Benchmark 10-year U.S. Treasury yields ticked up 2 basis points to 4.3559%, after slipping 3 bps overnight, as Trump continued to lash out at Federal Reserve Chair Jerome Powell for not cutting interest rates, although Bessent said there was no need for him to step down immediately. Bessent did say the Fed's vital independence on monetary policy is threatened by its "mandate creep" into non-policy areas and he called on the U.S. central bank to conduct an exhaustive review of those operations. Oil prices gained a little on Wednesday. U.S. crude rose 0.4% to $65.60 per barrel, while Brent was at $68.88 per barrel, up 0.4%. Spot gold prices were steady at $3,429 an ounce.
BBC News
18 minutes ago
- BBC News
Trump announces 'massive' trade deal with Japan, agreement with Philippines
Update: Date: 03:05 BST Title: Carmaker shares jump Content: Japan's benchmark stock index, the Nikkei 225, was more than 2.5% higher after Trump's announcement. Shares in motor industry giants - including Toyota, Nissan and Honda - jumped after broadcaster NHK said existing tariffs on Japanese carmakers would be cut. Japan's Prime Minister Shigeru Ishiba later confirmed that the country's carmakers would now face a 15% tariff on exports to the US, down from 25%. Update: Date: 03:00 BST Title: Welcome Content: Thanks for joining us as we bring you the latest updates on Donald Trump's new trade deal announcements. Trump says the US has agreed to a "massive" trade deal with Japan, one of the country's largest trading partners. Separately, he also announced that the US would levy a 19% tax on imports from the Philippines and Manila would remove duties on US goods - an agreement that is yet to be confirmed by the Philippines. While the finer details of the deals remain vague, with the White House not having released any information, they nonetheless signal a major development in Trump's tariffs war.
The Guardian
29 minutes ago
- The Guardian
Trump announces Japan trade deal after weeks of fraught negotiations
Donald Trump has announced a trade deal with Japan, potentially resolving weeks of fraught negotiations between the two allies which had caused political uproar and economic uncertainty in Tokyo. 'We just completed a massive Deal with Japan,' the US president announced in a post online, adding 'Japan will invest, at my direction, $550 Billion Dollars into the United States.' Japanese prime minister Shigeru Ishiba said his country's tariff negotiator had received the details of the deal and he would examine them before responding. 'Our overarching concern is the interests of the nation,' he said. In the post on Tuesday evening, Trump said Japanese imports would face a 15% tariff, an improvement on the 25% he threatened to impose from 1 August earlier this month. He also claimed that Japan would open its market to US products including cars, trucks, rice and certain agricultural products – many of which had proved to be a sticking point in negotiations. A senior member of the Ishiba administration told public broadcaster NHK, 'what President Trump posted on social media is accurate, and it is something that Japan welcomes.' It was unclear what tariff rate US imports to Japan would be charge at under the deal. Ishiba had reportedly tied his fate to the success of tariff negotiations, after his coalition lost its upper house majority in elections last weekend. Asked about his future as leader now that negotiations were reaching their conclusion, the prime minister said he was focused on the national interest and, 'would make an announcement once details of the deal were finalised.' Ishiba is facing growing calls to step down from within his own party following the upper house elections last weekend and a loss in the lower house in October, which came after he called a snap election. His position is widely regarded as untenable in light of the two consecutive electoral defeats. Japan's auto industry – which accounts for 8% of jobs in the country – was reeling from a 25% levy on imports to the US. The announcement on Tuesday made no mention of easing tariffs on automobiles – which account for more than a quarter of all Japanese exports to the US – but NHK reported that the rate would be lowered to 15%. Shares in Japanese automakers surged after the announcement, with Japan's overall Nikkei 225 index of stocks gaining more than one percent. Earlier this month, Trump bemoaned Japanese consumers' lack of enthusiasm for American cars and rice – labelling Japan 'very spoiled'. He suggested that a deal with Japan might not be possible. Japan's top tariff negotiator Ryosei Akazawa has been in the US this week for his eighth round of talks. Japan's Asahi newspaper reported Akazawa met with Trump at the White House on Tuesday. The deal with Japan follows agreements struck in recent weeks with the Philippines, Indonesia, the UK and Vietnam, and come as Trump has faced pressure to wrap up trade pacts after promising a flurry of deals ahead of his 1 August tariff deadline. Trump announced a new 19% tariff rate for goods from the Philippines on Tuesday, after a visit to the White House from Philippine president Ferdinand Marcos Jr. Trump said there would be no tariffs from the Philippines on US goods. Later, the White House confirmed the same 19% tariff rate for Indonesia, down from an initial 32%, as it released terms of a deal reached last week that calls for Indonesia to eliminate tariff and non-tariff barriers on most US goods. With Reuters
