
Stock markets rally after US-Japan trade deal announced
Date: 2025-07-23T06:18:23.000Z
Title: Introduction: Stock markets cheer US-Japan trade deal
Content: Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
Financial markets are cheering the news that Donald Trump has announced a trade deal with Japan.
Stocks are surging in Tokyo, where the Nikkei index has jumped by 3.75% and the wider Topix has rallied by 3.55%.
Other markets across Asia-Pacific are also higher, while the relief rally could drive Britain's FTSE 100 to a new record high when trading begins.
Nikkei jumps and Yen gains as #Japan's assets enjoy relief from US trade agreement. The headline 15% reciprocal tariff is a considerable discount from the 25% in the letter earlier this month. Toyota shares rising as much as 10% after NHK reported the US would impose a tariff… pic.twitter.com/Mi24v5uME8
Under the deal, Japanese goods will incur a 15% tariff at the US border, below the 25% level which Trump had threatened to impose from 1 August earlier this month (but still above Trump's 'baseline' tariff of 10%)
Announcing the deal, Trump declared on Truth Social:
We just completed a massive Deal with Japan, perhaps the largest Deal ever made. Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits. This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it.
Perhaps most importantly, Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things.
The breakthrough is lifting hopes that more countries will reach trade deals with the US, and avoid the hefty tariffs threatened by Trump
Tony Sycamore, market analyst at IG, explains:
While the details of the Japan trade deal are still limited and there may be some disagreement from the Japanese side, on face value, the deal announced this morning appears to be a positive outcome for markets overall, as it is well below the 25% level previously threatened.
Furthermore, this morning's trade deal with Japan becomes the sixth US trade agreement in recent months, following deals with Britain, Vietnam, the Philippines, Indonesia, and China. US Treasury Secretary Scott Bessent is scheduled to meet with his Chinese counterpart next week to discuss extending the August 12 deadline for tariffs on Chinese imports. Reaching an agreement there would significantly help to defuse the impact and lessen the importance of the August 1 deadline.
Trade deal progress with the EU before the August 1 deadline would make the date a non-event.
9.30am BST: Supreme Court to rule on appeal against LIBOR and EURIBOR convictions of Tom Hayes and Carlo Palombo
Noon BST: US weekly mortgage approvals data
3pm BST: US new home sales
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Libya Herald
42 minutes ago
- Libya Herald
Secular and religious agree on need for Libya's gradual energy subsidy reform
The secular and religious worlds have come to agreement on the need for Libya to gradually reform its fuel subsidies in the unlikely bedfellows of the International Monetary Fund (IMF) and Libya's (western region) Grand Mufti (the highest religious authority). Dar Al-Ifta, the highest religious body, released a video clip last Thursday (24 July) of the Grand Mufti of Libya, Sadeg al-Ghiriani, basing his religious recommendation on Libya's fuel subsidy reform on the IMF's study published this month entitled 'Energy Subsidy Reform in Libya'. Speaking on the problems of Libya's economy, the Mufti said ''the first step to reforming the waste of public money that Libya is currently experiencing is to lift the (energy) subsidies, almost half probably more, of which go to the money of criminals and smugglers''. Drawing on the IMF Al-Ghariani continued ''The report issued by the IMF calling for the lifting of energy subsidies is a study by international experts, the government should take advantage of it and gradually lift subsidies, as the report suggested, as there is no country in the world where gasoline and energy are sold at the price that it is sold at (LD 0.15 / US$ 0.09 per litre) in Libya''. Lack of trust in government – fear of failure to compensate for subsidy removal Dealing with some of the opposition Libyans have to the introduction of fuel subsidy reforms, the Grand Mufti said Libyans 'should not let their emotions carry them away by saying they fear if subsidies are removed the government will not live up to its promise to substitute it with a direct cash payment (equivalent to their realistic average annual consumption of fuel). ''Do Libyans agree to at least a third of their state budget being wasted away, robbed by thieves for illicit use and profligacy? This (continued squandering of public money) is not appropriate to the behaviour of any wise, Muslim or human being'', he added. ''I therefore call on the (Tripoli based Libyan) government to open this topic again based on the IMF's report and work on gradually lifting the (energy) subsidies, as suggested in the IMF report until energy prices reach their real (market) price''. The IMF study on Libya's energy subsidy reform It will be recalled that, and as reported by Libya Herald, the IMF report had stated that energy subsidies have become a significant burden on government finances in Libya. The study said the pervasive nature of subsidies has led to rampant corruption, smuggling, and a diversion of resources from essential public services. The paper identifies key barriers to reform, including opposition from vested interest groups and public apprehension regarding inflation and welfare loss. To address these challenges, a strategic reform plan is proposed, emphasizing a phased approach, a comprehensive communication plan and social protection measures to mitigate the adverse effects of subsidy removal. By taking these steps, Libya can transition towards a more sustainable framework that supports macroeconomic stability, the IMF study stated. . IMF study entitled 'Energy Subsidy Reform in Libya' concludes that reform is crucial as subsidies lead to overconsumption and premature resource depletion Fuel subsidies reached LD 60 billion, 30 percent of which is smuggled – therefore can invest just LD 5 bn in housing: CBL Governor Issa Audit Bureau 2023 Annual Report: 2023 state subsidies amounted to LD 68.5 billion Libya loses about US$ 12 billion annually in smuggled subsidies: Aldabaiba Decision to remove fuel subsidies has been taken: PM Aldabaiba ( NOC chairman Bengdara says his organisation is not a security force to combat fuel smuggling ( Aldabaiba forms ministerial committee to study mechanism for fuel subsidy reform – again ( Supreme Council for Energy adopts NOC 2023-2027 plan, including alternative energy project ( Supreme Council for Energy Affairs holds first meeting ( At Gharian cabinet meeting, Aldabaiba explains fall in black-market value of dinar and resounds alarm over fuel subsidies ( Fuel quantities, smuggling and subsidy reform – and increased oil production through PPP discussed at summit meeting ( Alternatives to fuel subsidies with cash payments delivered to Aldabaiba ( Prime minister Aldabaiba forms Ministerial committee to study reforming fuel subsidies, orders payment of family grant, increases pensions ( Libya's Economic Reform Salon proposes reforms for the country's fuel subsidies | ( Fuel subsidy reform proposal presented to Serraj government | ( Libya reduces subsidies on commercial-use kerosene | ( Subsidies are seen as an entitlement by Libyans: GNA Planning Minister | ( Government to reduce petrol subsidies | ( Cash for goods subsidy reform adopted by Tripoli authorities | ( Subsidy reform: petrol prices to be increased by 200% | ( 2014 Budget commits government to subsidy reform by Jan 2015 | ( The 2014 Budget: Subsidies up – despite deficit and oil exporting crises | ( 2014 budget expected to be LD 68.59bn – salaries and subsidies shoot up | ( Unemployment, subsidies, undiversified economy, stifled private sector – problems of Libyan economy: WB | ( Fuel subsidies removed over 30 months in three stages – Economy Minister Abufunas | ( Subsidy reform: Smugglers are the ones prospering from subsidies – Zeidan | ( Cabinet meeting forms committee on subsidies – Zeidan | ( Oil minister says fuel subsidies to go by 2016 | (


The Independent
an hour ago
- The Independent
TACO not on the menu: Howard Lutnick says tariffs start August 1 with no extensions
Tariffs are coming on August 1 and there will be no more extensions, Commerce Secretary Howard Lutnick said. President Donald Trump imposed his 'Liberation Day' tariffs in April, causing a rollercoaster stock market. A week later, he announced a 90-day pause, which has now expired, with many set to take effect Friday. Although the world may have gotten used to Trump announcing sweeping levies before backing out of them shortly thereafter, this time, there's no risk of TACO — the shorthand for "Trump always chickens out" — the commerce secretary suggested. "No extensions. No more grace periods. August 1, the tariffs are set. They'll go into place," Lutnick said on "Fox News Sunday.' World leaders are still more than willing to talk to Trump after the August 1 deadline. 'Between now and then, I think the president's going to talk to a lot of people. Whether they can make him happy is another question, but the president is definitely willing to negotiate and talk to the big economies,' Lutnick continued. Trump is meeting with European Commission chief Ursula von der Leyen on Sunday to try to avoid a potential trade war. "We're working very diligently with Europe, the EU," Trump told reporters before he left for Scotland on Friday. "I would say that we have a 50-50 chance, maybe less than that, but a 50-50 chance of making a deal with the EU." Trump has announced trade deals with several countries, including Japan, Indonesia and the Philippines. Lutnick's announcement of the hard deadline contrasts with the message of Treasury Secretary Scott Bessent days earlier, when he suggested the tariff deadlines were flexible. 'The important thing here is the quality of the deal, not the timing of the deals,' Bessent told CNBC on Monday.


BreakingNews.ie
an hour ago
- BreakingNews.ie
Trump and von der Leyen meeting is ‘significant and decisive', McGrath says
The meeting between Donald Trump and the president of the European Commission is a 'significant and decisive moment', with hopes for a tariff deal between the US and the EU, Commissioner Michael McGrath has said. Mr McGrath, EU Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, said today will involve substantive negotiations between both sides. Advertisement The US president will meet European Commission President Ursula von der Leyen for talks on the trading relationship between Europe and the US. US president Donald Trump enjoyed a round of golf before his meeting with Ursula von der Leyen (Jane Barlow/PA) The Commission President will meet Mr Trump at his golf resort in Scotland. The EU negotiators are hoping to avoid a 30 per cent US tariff on European goods that was threatened by Mr Trump earlier this month. Mr McGrath said they are hoping for a conclusion and for a 'good outcome' for the EU, but said that it has prepared for other outcomes. 'It's a significant moment, we hope a decisive moment, and it builds on an enormous amount of work that has been done over quite a period of time,' Mr McGrath said ahead of the meeting. Advertisement 'President Trump invited President von der Leyen to Scotland for a meeting. 'This follows on the back of intensive negotiations over a number of months. 'It is a live negotiation. We are hoping for a conclusion and for a good outcome on behalf of the European Union, but we also have to be prepared that other outcomes are possible.' He added: 'We are close to the deadline of August 1st. It is a matter of days away, and we are at a point where the final items of negotiation require the input of the key leaders of President von der Leyen on behalf of the European Union and president Trump. Advertisement 'It is very often the case that you narrow negotiations down to a select number of outstanding items, and I think that is the point where we are at now. 'I had a good discussion with Commissioner [Maros] Sefcovic yesterday. He will also be there today, and I understand his interlocutors on the US side will also be present. So it will be a substantive negotiation today. 'It is not a case of turning up and signing on the dotted line. There will be a real discussion that will happen, and it will take on a dynamic of its own, and let's see what happens over the course of the afternoon. 'But from the EU's point of view, we are determined to do all that we can to get a deal for European businesses, because we recognise the cost of uncertainty. Advertisement 'It manifests in trade and in investment decisions and ultimately in employment and of course, tariffs can cost consumers at the end of the day. 'We want a good deal. We have negotiated hard, and we're at a point now where hopefully the two leaders can today bring it to a concluding phase.' He said the EU wants to reach a 'comprehensive' agreement and final settlement on all the outstanding issues, including pharmaceuticals. World Trump gets down to business with trade talks with... Read More 'Of course, when it comes to pharma, there are genuine issues of availability of medicine that have to be considered, and also affordability of medicine on both sides of the Atlantic,' he added. Advertisement 'The supply chains are complex in relation to pharma, the European Union has been hugely successful in developing the pharma industry, the broader life sciences sector, and certainly that is the case here in Ireland as well. 'We do want to bring clarity and certainty, including in relation to pharma, over the course of the discussions. It remains to be seen if that can be achieved today.'