Tokyo [Japan], July 24: Tokyo stocks' key indexes ended up over 3% at one-year highs on Wednesday after Japan and the United States reached a trade deal with 15% US tariffs on auto and other products, lower than initially proposed by President Donald Trump, Kyodo News reported.
The market was further lifted by investors hoping for a new Japanese government as Prime Minister Shigeru Ishiba's resignation is viewed as inevitable, following the major setback for the governing coalition in Sunday's House of Councillors election.
The 225-issue Nikkei Stock Average advanced 1,396.40 points, or 3.51%, from Tuesday to 41,171.32, its highest level since July 16, 2024. The broader Topix index finished 90.19 points, or 3.18%, higher at 2,926.38.
All industry sectors advanced on the top-tier Prime Market, with gainers led by transportation equipment, bank and metal product issues.
The US dollar briefly weakened to the lower 146 yen range in Tokyo as the Japan-US trade deal helped ease concerns over the prospects for the Japanese economy, boosting the yen.
Stocks rose across the board, with auto shares surging after Tokyo and Washington agreed that US tariff on automobiles, imposed since April, will be cut to 15% from 27.5% for Japanese cars.
"Since the Japan-US tariff negotiations had been expected to be prolonged, the market reacted positively as the trade deal was announced relatively soon after the national election" on Sunday, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.
Source: Emirates News Agency
