TOKYO, Japan – Tokyo’s Nikkei index rose on Wednesday following the announcement of a trade agreement between Japan and the United States to reduce tariffs imposed by President Donald Trump.
The trade deal includes reductions on tariffs affecting the crucial car sector.
Investors responded positively to the news of the agreement, as well as to reports of the United States reaching trade agreements with Indonesia and the Philippines.
These developments have fueled optimism among investors that other countries might also achieve deals to mitigate the effects of the U.S. tariffs.
Despite the absence of formal agreements prior to the August 1 deadline set by Trump, equity markets have trended upward in recent weeks.
The optimism stems from expectations that governments will eventually reach agreements to circumvent the impact of the tariffs.