Newscasts - Stocks surge as US-Japan trade deal avoids the worst

Subaru

23/07/2025 11:52

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Source: 'Reuters - Business videos'

Description: Japanese shares surged to a one-year high on Wednesday as the country struck a trade deal with the United States that lowers tariffs on its autos, while European shares also gained on hopes that the EU could soon get a deal too. Francis Maguire reports.

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Video Transcript:

Japanese shares surged to a one-year high on Wednesday. Investors were excited after the country struck a trade deal with the US which lowered tariffs on autos. The move revived hopes for an agreement between the EU and US which also boosted European stocks. Donald Trump said a trade deal with Tokyo would include Japan paying a lower-than-threatened 15% tariff on shipments to the US. The Nikkei Index jumped 3.5% following the news as shares of automakers surged. Mazda was the biggest riser at almost 18%, while Toyota and Subaru also saw big jumps. South Korean automakers rose too as analysts grew hopeful over potential progress in tariff negotiations between Seoul and Washington. Trump further said representatives from the EU were due to meet for trade negotiations on Wednesday. That raised hopes for a deal with Europe. Although the EU is reportedly refining countermeasures in case of a deadlock before the August 1 deadline. The European STOXX 600 Index rose 1% early Wednesday, with auto shares surging around 4%. Car giant Stellantis was among the top gainers, rising around 7%.