Asian markets posted collective gains at the close of trading on Wednesday, July 23, as concerns over tariffs eased after the United States announced an agreement with Japan, Indonesia, and the Philippines. Japan’s Nikkei index recorded its highest daily closing level since July of last year, supported by gains in the auto sector and ignoring reports that Japanese Prime Minister Ishiba would step down next month.
US President Donald Trump stated on his Truth Social account that an agreement had been reached with Japan, and that they had concluded a deal that could be the largest ever, noting that the agreement includes a 15% tariff on goods imported from Japan, including cars, and that Japan will invest $550 billion in the United States.
Markets are anticipating further trade agreements before the August 1 deadline, as negotiations remain stalled with India and the European Union. A deal with the Philippines has been finalized with a 19% tariff, and an agreement with Indonesia is almost certain to apply a 19% tariff. In a related development, the Japanese newspaper Yomiuri reported that Japanese Prime Minister Shigeru Ishiba may resign before the end of August, as he may not be able to bear the responsibility for the loss in the upper house elections.
The Nikkei index closed the session at 41,171 points, up 3.51%, or 1,396 points, to close at its highest level since July 2024. The Topix index of the Tokyo Stock Exchange rose today by approximately 3.18%, closing at 2,926 points. Automakers Mazda, Toyota, and Mitsubishi led the Nikkei gains, rising more than 13%, while Honda shares rose 11% and Nissan shares rose 9%.
Chinese indices recorded slight gains in today’s session. The broader Chinese CSI300 index closed the session with gains of approximately 0.02%, closing at 4,119 points. The Shanghai Composite index of the Shanghai Stock Exchange closed 0.01% higher at 3,582 points. The Hang Seng Index, the main index of the Hong Kong Stock Exchange, rose by approximately 1.39% today, closing at 25,478 points, led by gains in Baidu and Tencent, which rose by more than 4%.
In contrast, the South Korean Kospi index rose by approximately 0.44% today, closing at 3,183 points.
India’s Sensex index rose by approximately 0.44% before the close, trading at 82,546 points, while the Nifty 50 index rose by approximately 0.40%, trading at 25,161 points.
New Zealand stock markets closed with losses today, as the NZX 50 index fell by approximately 0.31%, closing at 12,794 points, while Australia’s ASX 200 index rose by approximately 0.69%, closing at 8,737 points. Singapore’s main index rose by 0.63% in pre-closing trading.