Asian Markets Rally on Customs Deal Hopes

Tokyo Soars as US-Japan Trade Talks Conclude Positively

Asian stock markets experienced a significant upswing for the second consecutive day, fueled by the announcement of an agreement in principle between Japan and the United States on customs matters. This positive development has injected optimism into investor sentiment across the region.

Nikkei Breaks Records Amidst Trade Optimism

The benchmark Nikkei 225 index in Tokyo saw a robust 2.0 percent increase by midday trading. Demonstrating widespread market confidence, the broader Topix index touched a new record high, climbing by 1.9 percent during the early trading session.

The positive momentum extended to other major Asian financial centers. Hong Kong’s Hang Seng index also recorded gains, trading up by 0.4 percent after a few hours of activity. In mainland China, Shenzhen’s composite index edged up by 0.5 percent, while Shanghai’s Dito index saw a modest rise of 0.3 percent.

This surge follows the recent confirmation of a trade agreement, which analysts suggest will reduce trade friction and boost economic activity. For context, the World Trade Organization’s latest report indicates that global trade growth is projected to strengthen by 3.3% in 2024, partly driven by such bilateral agreements (WTO, 2023).