Investinglive Asia-pacific FX news wrap: Japan Trade Deal Lifts Nikkei, JPY Choppy ...Middle East

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Trump reckons he has completed a 'massive deal' with JapanTrump says hes not lying this time, Japan deal is a 'lot different' from deals in the pastUS and Japanese equity index futures are higher on Trump's 'deal' with JapanJapan's Akazawa says 'Mission Complete'Japan and US agreed to 15% auto tariff according to NHKUS 'big three' automakers oppose the Japan trade dealJapan Prime Minister Ishiba: Agreed with the U.S. on tariffs.Japan stocks - Nikkei has risen to its highest since 17 July 2024Trump admin official says Japan will buy more agricultural produce from USSMBC: Positive trade news will give only limited yen support amid political uncertaintyMoody’s Analytics: Japan trade deal could deepen political strains in Tokyo

Bank of Japan Uchida:

Bank of Japan deputy governor Uchida: Japan’s economy has recovered moderatelyMore from Bank of Japan Deputy Governor UchidaMore again from Bank of Japan Deputy Governor Uchida - CPI to dip then riseBank of Japan Deputy Governor Shinichi Uchida - recapBOJ flags trade uncertainty, signals caution on further rate hikes

China Lodges Protest Over EU Sanctions in High-Level Trade TalksA Japanese media outlet reports that PM Ishiba will resign by the end of AugustPBOC sets USD/ CNY mid-point today at 7.1414 (vs. estimate at 7.1596)Is PIMCO warning runaway US spending may trap Fed, as fiscal strains test monetary limits?Australia's "Leading Index continues to show stalling momentum"Australian regulator says will keep mortgage serviceability buffer, policy settings onholdYen could face fresh storm as Japan vote fuels carry trade revival and BOJ policy doubtsJapan’s Akazawa met with Trump on TuesdayJapan politics - PM Ishiba under resignation pressure, to meet with Aso, Kishida todayOpenAI confirmed as Oracle’s US$30bn cloud client, fueling stock surgeMore on Goldman Sachs forecast for 3 consecutive 2025 Federal Reserve interest rate cuts.Investinglive Americas FX news wrap 22 Jul: USD continues its fall for 2nd day this weekJapan’s Akazawa, US Treasury Sec Bessent held trade tariff talks for about 30 minutesOil: private survey of inventory shows a headline crude oil draw smaller than expectedNorthrop Grumman do not believe current Trump tariffs will have material adverse effectNASDAQ winning streak ends. Alphabet rose for the 10th straight day. Earnings tomorrow.Trump Team Probes Fed Project as another TACO takes shapeTrump will meet UK Prime Minister Starmer on the weekend - seeking trade deal

The big news today was the announcement from Trump of a U.S.-Japan trade deal. His initial tweet was met with some scepticism—understandable, given his track record of misleading markets on trade—but confidence rose after Japan’s chief tariff negotiator, Ryosei Akazawa, confirmed the agreement via social media.

15% reciprocal tariffs

Metal tariffs (e.g., steel and aluminium) remain at 50%

Japan won’t cut tariffs or "sacrifice agriculture"

Japan will invest $550 billion into the United States

50% steel tariffs

50% copper tariffs

25% tariffs on imports from Mexico

In Japanese political news, the Mainichi Shimbun reported that Prime Minister Shigeru Ishiba will step down by the end of August following his coalition’s defeat in the recent upper house election.

Through it all, the yen saw choppy price action, trading in a wide 146.20–147.20 range. USD/JPY dipped (i.e., yen strengthened) on the initial trade headlines before bouncing back, dipping again, and bouncing again! As of this post, the pair is little changed from late U.S. session levels.

Nikkei:

This article was written by Eamonn Sheridan at investinglive.com.

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