Global stock markets rallied sharply on Wednesday following news of a landmark trade agreement between the United States and Japan, easing investor fears over a prolonged tariff war.
Asian equities led the charge, with shares climbing 1.7%—the biggest daily gain in a month—driving the MSCI global stocks gauge up to an 11% gain year-to-date.
Futures tracking the S&P 500 edged 0.2% higher after the index closed at a record high on Tuesday. European stock futures also showed strength, rising by 1.1% as markets reacted positively to signs of stabilising global trade relations.
Japan’s Nikkei-225 index soared 3.2%, its strongest single-day gain in months, with Toyota Motor Corp. shares surging to their highest jump since 1987. Meanwhile, the yen weakened against the U.S. dollar amid reports that Prime Minister Shigeru Ishiba is stepping down, according to Japan’s Yomiuri newspaper.
The broader financial landscape also responded, with U.S. 10-year Treasury yields rising two basis points to 4.36%, while the dollar remained flat.
Investors are now increasingly optimistic that global economies can avoid deeper disruptions as countries move to secure trade deals with the U.S. ahead of the critical August 1 deadline, restoring confidence in earnings stability and global growth.
