Japanese Equities Rise As 15% Donald Trump Tariff Deal Sealed, Autos Up
The Topix rose 0.8% to 3,106.31 as of 9:15 a.m. Tokyo time, while the blue-chip heavy Nikkei 225 Stock Average advanced 1.2%.
Japanese stocks climbed after President Donald Trump signed an executive order implementing his trade agreement with Japan, with a maximum 15% tariff on most of its products, including autos.
The Topix rose 0.8% to 3,106.31 as of 9:15 a.m. Tokyo time, while the blue-chip heavy Nikkei 225 Stock Average advanced 1.2% to 43,109.47. The yen was up 0.1% to 148.36 against the dollar.
Relief for aerospace and automobile imports will become effective within seven days, according to the executive order.
“News that the deal is finally locked in at a 15% max rate pretty much takes that last risk off the table,” said Phillip Wool head of portfolio management at Rayliant Global Advisors Ltd. “Along those lines, this should be seen as good news for the auto sector, where tariff risk has weighed most heavily.”
Toyota Motor Corp. contributed the most to the Topix’s gain, rising 1.6%. Out of 1,677 stocks in the index, 1,187 rose and 414 fell, while 76 were unchanged.
According to a poll of nine market participants, the Nikkei 225 is projected to rise an average of 10% over the next 12 months from its most recent record high of 43,714.31 reached last month. The benchmark could climb as much as 29% from Thursday’s close under the most bullish forecast.
