BEIJING (dpa-AFX) - Asian stocks closed mostly higher on Wednesday after U.S. President Donald Trump announced trade agreements with Japan and the Philippines, easing concerns about the tariff war.
The 'largest ever' U.S. trade deal with Japan features a 15 percent tariff on Japanese exports and includes a commitment from Tokyo to invest $550 billion in the United States and open its markets for American vehicles, rice, and other agricultural goods.
Trump claimed the U.S. would receive 90 percent of profits from the agreement and that the pact could generate hundreds of thousands of American jobs.
According to Trump, the new trade pact with Philippines would make the county an open market with zero tariffs on U.S. goods, but with Manila paying a 19 percent.
The announcement of these trade deals spurred expectations of further trade agreements as the Aug.1 deadline nears.
Investors also cheered comments from U.S. Treasury Secretary Scott Bessent backing Fed Chair Jerome Powell.
Bessent said there's no need for him to step down before his term ends in May but he has a chance to cement his legacy by reforming the Fed's non-monetary functions.
The yen tested a two-week high against the dollar on Trump's announcement of the trade deal with Japan.
Gold dipped from a five-week high while oil rose on industry data indicating strong U.S. demand.
China's Shanghai Composite finished marginally higher at 3,582.30 after reports emerged that the U.S. and China will meet in Stockholm next week to discuss extending their tariff truce.
Hong Kong's Hang Seng index climbed 1.62 percent to 25,538.07, extending gains for a fourth straight session.
Japanese markets rallied as automakers surged on reduced U.S. imports levy. The Nikkei average jumped 3.51 percent to 41,171.32, rising to a one-year high.
The broader Topix index surged 3.18 percent to 2,926.38. Nissan Motor, Honda Motor, Toyota and Mitsubishi Motors soared 8-14 percent.
Longer-term Japanese government bond yields climbed, with the 10-year yield hitting the highest since 2008 at 1.6 percent on speculation that the Bank of Japan will resume raising interest rates in the wake of reduced uncertainty surrounding the economy.
Also, media reports suggested that embattled Prime Minister Shigeru Ishiba was preparing to step down in response to the weekend election results.
Seoul stocks eked out modest gains in cautious trade ahead of the last-minute talks with the United States on its sweeping tariff scheme.
The Kospi average rose 0.44 percent to 3,183.77, with tech shares surging ahead of earnings results from the so-called Magnificent Seven companies.
Australian markets closed higher, with mining and energy stocks surging to multi-month highs. The benchmark S&P/ASX 200 rose 0.9 percent to 8,737.20- leaving it just shy of a record high.
The broader All Ordinaries index settled 0.67 percent higher at 9,001.40. Woodside Energy rose 1.5 percent after beating quarterly sales forecasts.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index ended down 0.31 percent at 12,794.06, extending losses for a second consecutive session.
U.S. stocks ended mixed overnight as investors reacted to a slew of earnings and fresh trade developments.
The tech-heavy Nasdaq Composite dipped 0.4 percent, while the S&P 500 inched up marginally and the Dow added 0.4 percent.
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