President Donald Trump announced a trade agreement with Japan, capping reciprocal tariffs at 15%, leading to a surge in Japanese equities and global auto shares, while easing cross-asset volatility. The deal includes a 15% tariff ceiling on Japanese goods to the US and up to $550 billion in US investment from Japan. Prime Minister Shigeru Ishiba emphasized protecting Japan’s interests. Japanese equities soared, with automakers seeing significant gains. The agreement also impacted the rates market and FX markets. The deal has potential global implications, with European and South Korean automakers seeing positive movement.

Read more at Investing.com: Markets Breathe Again as US-Japan Tariff Truce Sparks Global Auto Rally