Tokyo’s Nikkei Leads Asian Rally After Japan-US Trade Agreement

 Tokyo’s Nikkei 225 index surged by 3.2% on July 23, 2025, leading an Asian market rally following the announcement of a landmark Japan-US trade deal. 

The agreement, unveiled by President Donald Trump on July 22, reduces tariffs on $150 billion in Japanese exports, including automobiles and electronics, while opening U.S. markets to $80 billion in American agricultural goods. 

The Nikkei closed at 42,500 points, its highest since 1990, driven by gains in tech giants like Sony and Toyota, which saw stock increases of 5% and 4% respectively.

Japanese officials hailed the deal as a boost to economic recovery, with exports projected to rise 8% annually. However, critics argue it favors U.S. interests, potentially undermining Japan’s domestic industries, as import competition could depress local farmers’ incomes by 15%. 

The rally reflects market optimism, but the long-term balance of benefits remains debated, with some suggesting it aligns with Trump’s protectionist agenda rather than mutual gain.