Business live: Nikkei jumps on US-Japan trade deal
President Donald Trump said late on Tuesday that the trade deal includes Japan paying 15 per cent tariff on shipments of cars to the US, down from a proposed 25 per cent. Proposed levies on other Japanese goods were also cut by the same amount.
'I just signed the largest TRADE DEAL in history with Japan,' Trump said on his Truth Social platform.
Japan's prime minister Shigeru Ishiba, who local media reported will soon resign after a bruising election defeat on Sunday, said the tariff was 'the lowest among countries that have a trade surplus with the US'.
Charu Chanana, chief investment strategist at Saxo, said: 'Expectations for a breakthrough [on the US-Japan talks] were low, so Trump's announcement delivers a mild upside surprise, providing near-term relief for Japanese equities.'
Japan's Nikkei 225 climbed 3.6 per cent as shares of carmakers surged on news of lower tariff on cars. Honda shares rose 11 per cent and Toyota gained 5.6 per cent.
The deal boosted shares in South Korean carmakers, fuelling hopes of progress in tariff negotiations between South Korea and the United States. Kia and Hyundai shares were both up around 7 per cent.
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