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HomeMarket NewsJapanese stock markets surge, Yen sees volatile moves after trade deal with the US
While equity markets are surging to record levels, the Yen gained as much as 0.3% against the US Dollar, before paring those advances quickly. Japanese Government bond futures fell 70 ticks, while the 30-year yield rose by 4 basis points to 3.12%.
Japanese benchmark indices have surged in early trading on Wednesday, July 23, in Tokyo, after US President Donald Trump announced a trade deal with Japan a few hours prior.
The Nikkei 225 benchmark index is now trading with gains of 1.8%, after making an intraday high of 40,669, which was a gain of over 2%. The index is just 350 points away from its recent record high of 40,852.
On the other hand, the Topix, which is the broader market index, hit a record high of 2,906 in early trading, gaining 2% as well.
Donald Trump announced the trade deal with Japan on Truth Social, where he wrote that Japan will have to pay a 15% reciprocal tariff, which is lower than the 24% levy initially threatened in April and then revised higher to 25%, when Trump sent out letters to various countries, including Japan.
Although it is still not clear what will be the levy on Japanese exports of automobiles to the US, which currently attract a 25% tariff, in-line with other countries.
While equity markets are surging to record levels, the Yen gained as much as 0.3% against the US Dollar, before paring those advances quickly. Japanese Government bond futures fell 70 ticks, while the 30-year yield rose by 4 basis points to 3.12%.
As part of the trade deal, Japan will be investing $550 billion in the US, of which, 90% of the profits will go to the US, as per Trump's post.
