Asian markets gain, with Japan's Nikkei up 3.5%, lifted by deal on Trump's tariffs
The agreement as announced calls for a 15% import duty on goods imported 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 gained 3.5% in afternoon trading to 41,171.32.
Hong Kong's Hang Seng jumped 1.4% to 25,470.25, 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.
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 nearly 11% and Nissan added 8%. In other sectors, Nippon Steel, which is acquiring U.S. Steel, rose 2.4% while video game maker and significant exporter Nintendo Co. added 0.7%. Sony Group surged 4.6%.
Wall Street inched to another record on Tuesday following some mixed profit reports, as General Motors and other big U.S. companies gave updates on how much Trump's tariffs are hurting or helping them.
The S&P 500 added 0.1% to the all-time high it had set the day before, closing at 6,309.62. The Dow Jones Industrial Average rose 0.4% to 44,502.44. The Nasdaq composite slipped 0.4% from its own record, to 20,892.68.
So far, the U.S. economy seems to be powering through the uncertainty created by Trump's on-and-off tariffs. Many of Trump's proposed taxes on imports are currently on pause, and the next big deadline is Aug. 1. Talks are underway on possible trade deals with other countries that could lower the stiff proposals before they kick in.
Trump said 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.
In the bond market, Treasury yields sank as traders continue to expect the Federal Reserve to wait until September at the earliest to resume cutting interest rates.
The yield on the 10-year Treasury eased to 4.34% from 4.38% late Monday.
In other dealings early Wednesday, U.S. benchmark crude oil gained 15 cents to $65.46 a barrel. Brent crude, the international standard added 16 cents to $68.74 a barrel.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
18 minutes ago
- Yahoo
State of play in Trump's tariffs, threats and delays
Dozens of economies including India, Canada and Mexico face threats of higher tariffs Friday if they fail to strike deals with Washington. Here is a summary of duties President Donald Trump has introduced in his second term as he pressures allies and competitors alike to reshape US trade relationships. - Global tariffs - US "reciprocal" tariffs -- imposed under legally contentious emergency powers -- are due to jump from 10 percent to various steeper levels for a list of dozens of economies come August 1, including South Korea, India and Taiwan. The hikes were to take effect July 9 but Trump postponed them days before imposition, marking a second delay since their shock unveiling in April. A 10 percent "baseline" levy on most partners, which Trump imposed in April, remains in place. He has also issued letters dictating tariff rates above 10 percent for individual countries, including Brazil, which has a trade deficit with the United States and was not on the initial list of higher "reciprocal" rates. Several economies -- the European Union, Britain, Vietnam, Japan, Indonesia and the Philippines -- have struck initial tariff deals with Washington, while China managed to temporarily lower tit-for-tat duties. Certain products like pharmaceuticals, semiconductors and lumber are excluded from Trump's "reciprocal" tariffs, but may face separate action under different authorities. This has been the case for steel, aluminum, and soon copper. Gold and silver, alongside energy commodities, are also exempted. Excluded too are Mexico and Canada, hit with a different set of tariffs, and countries like Russia and North Korea as they already face sanctions. - Canada, Mexico - Canadian and Mexican products were hit by 25 percent US tariffs shortly after Trump returned to office, with a lower rate for Canadian energy. Trump targeted both neighbors over illegal immigration and fentanyl trafficking, also invoking emergency powers. But trade negotiations have been bumpy. This month, Trump said Canadian goods will face a higher 35 percent duty from August 1, and Mexican goods will see a 30 percent level. Products entering the United States under the USMCA North American free trade pact, covering large swaths of goods, are expected to remain exempt -- with Canadian energy resources and potash, used as fertilizer, to still face lower rates. - China focus - Trump has also taken special aim at China. The world's two biggest economies engaged in an escalating tariffs war this year before their temporary pullback. The countries imposed triple-digit duties on each other at one point, a level described as a trade embargo. After high level talks, Washington lowered its levies on Chinese goods to 30 percent and Beijing slashed its own to 10 percent. This pause is set to expire August 12, and officials will meet for further talks on Monday and Tuesday in the Swedish capital Stockholm. The US level is higher as it includes a 20 percent tariff over China's alleged role in the global fentanyl trade. Beyond expansive tariffs on Chinese products, Trump ordered the closure of a duty-free exemption for low-value parcels from the country. This adds to the cost of importing items like clothing and small electronics. - Autos, metals - Trump has targeted individual business sectors too, under more conventional national security grounds, imposing a 25 percent levy on steel and aluminum imports which he later doubled to 50 percent. The president has unveiled plans for a 50 percent tariff on copper imports starting August 1 as well and rolled out a 25 percent tariff on imported autos, although those entering under the USMCA can qualify for a lower rate. Trump's auto tariffs impact vehicle parts too, but new rules ensure automakers paying vehicle tariffs will not also be charged for certain other duties. He has ongoing investigations into imports of lumber, semiconductors, pharmaceuticals and critical minerals that could trigger further duties. - Legal challenges - Several legal challenges have been filed against the tariffs Trump invoked citing emergencies. The US Court of International Trade ruled in May that the president had overstepped his authority, but a federal appeals court has allowed the duties to remain while it considers the case. If these tariffs are ultimately ruled illegal, companies could possibly seek reimbursements. bys/des/mlm Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
UPI
20 minutes ago
- UPI
Boeing machinists who build fighter jets reject contract, plan strike
A large American flag is hoisted behind a Boeing F/A-18 E1 Super Hornet jet before dedication ceremonies at the National Museum of Transportation in Kirkwood, Mo., on August 3, 2024. Machinists at three plants in the St. Louis area the product fight jets rejected a contract. File Photo by Bill Greenblatt/UPI | License Photo July 27 (UPI) -- Several thousand Boeing union workers at three St. Louis-area plants who build fighter jets are planning to go on strike after rejecting a proposed contract Sunday that would pay an average of than $100,000 per year. Members of the International Association of Machinists and Aerospace Workers at Boeing factories in St. Louis and St. Charles in Missouri and Mascoutah in Illinois voted against the new contract that included a 20% wage increase over four years. The contract for District 837 members will expire at 11:59 p.m. CDT at which point there is a seven-day cooling-off period before a strike could start. In all, there are 16,000 employees at the three locations, according to St. Louis Business Journal Research. "IAM Union members delivered a clear message: the proposal from Boeing Defense fell short of addressing the priorities and sacrifices of the skilled IAM Union workforce," the union said in a news release. "Our members are standing together to demand a contract that respects their work and ensures a secure future." Boeing and the union representing the machinists on Thursday reached an agreement on a four-year contract that would boost annual salaries to $102,600 with an 8% increase in the first year and 4% for the other three years. "This contract puts money in members' pockets, protects healthcare access, and ensures our members have a voice in future health decisions all while respecting the skill and dedication IAM workers bring to Boeing's critical defense programs," IAM Union International President Brian Bryant said after the tentative contract. The total increase would be 40% when including other benfits. There was a $5,000 ratification bonus. Boeing said the current average hourly pay of $35 is $6 higher than three years ago. "The IAM Union remains committed to achieving a fair contract that meets the needs of our members," the union said. "The IAM Union looks forward to returning to the bargaining table with Boeing's leadership to deliver meaningful improvements that support the well-being and livelihoods of IAM members and their families." IAM, with approximately 600,000 active and retired workers, is one of North America's largest and most diverse industrial trade unions. They represent workers in aerospace/airlines, defense, shipbuilding, railroads/transit, healthcare and automotive in the United States and Canada. "We're disappointed our employees voted down the richest contract offer we've ever presented to IAM 837 which addressed all their stated priorities," Dan Gillian, Boeing Air Dominance vice President, said in a statement, obtained by KSDK-TV. "We've activated our contingency plan and are focused on preparing for a strike. No talks are scheduled with the union." Last year, Boeing machinists in the Pacific Northwest were in a 54-day strike that shut down airplane production. Ultimately, they agreed to an immediate pay boost of 13% and a total of 44% over four years when compounded. Boeing has more than 170,000 employees worldwide. The vote came two days before Boeing plans to announce its second-quarter earnings.
Fox News
20 minutes ago
- Fox News
Secret Service thwarts potential threat near Trump's White House grounds with rapid response
The U.S. Secret Service confirmed Sunday evening that a person is in custody following reports that a suspicious package was found near the White House. "At approximately 2:30 p.m. on Sunday, July 27, 2025, U.S. Secret Service Uniformed Division officers immediately apprehend [sic] an individual who climbed a fence on the southeast side of the U.S. Treasury Building," the federal law enforcement agency told Fox News. The suspect allegedly dropped a bag on the sidewalk adjacent to the fence line of the building, which is located adjacent to the White House. That prompted a response from the Metropolitan Police Department's Explosive Ordnance Disposal (EOD) Team, who cleared the item. The suspect was transported to a local hospital for a medical evaluation, and will face charges for unlawful entry, as well as fugitive from justice stemming from a warrant in a different jurisdiction. Twice during his 2024 campaign for the nation's highest office, President Donald Trump was the subject of assassination attempts. July 13 marked one year since a lone gunman on a rooftop at the Butler Farm Show Grounds in Pennsylvania fired eight rounds at the president while he hosted a campaign rally. Trump was shot in the ear before his Secret Service detail dove atop him and pulled him to the ground. The gunman was killed by authorities at the scene. Trump emerged with blood dripping down his cheek, and in an iconic moment, raised his fist and chanted, "Fight, fight, fight" while his security detail attempted to whisk him away to safety. Corey Camperatore, a local former fire chief who was attending the rally, was shot and killed while valiantly shielding his family from the volley of gunfire. Just three months later, the Secret Service spotted the barrel of a rifle poking through the bushes while Trump played golf at his Trump International Golf Club in West Palm Beach, Florida. The suspect in that alleged attempt on Trump's life, Ryan Routh, 59, ran away when spotted, only to be taken into custody a short time later. He was charged with assaulting a federal officer and multiple firearms violations, along with the attempted assassination. He is scheduled to represent himself at his upcoming trial.
