Asia Summary and Highlights 23 Jul
U.S. and Japan reached a trade deal
Risk mood upbeat on U.S. - Japan trade deal
Asia Session
While it looked like things wouldn't get settled between the U.S. and Japan before August 1, Trump announced abruptly that a trade deal has been reached with Japan. That was confirmed by Japan's trade deal negotiator Akazawa, citing "Mission accomplished". Details are still lacking but so far it is expected Japan will pay 15% tariff and investing 550 billion USD in the U.S.. Japanese equities are loving that and see Nikkei up 3% while USD/JPY reversed earlier losses to trade 0.25% higher at 146.94 with the knee jerk dip to 146.19 after the deal announcement.
The broader risk mood is upbeat on Wednesday as the U.S.-Japan trade deal is reached. Nikkei is leading with more than 3% of gains while regional equities outperform U.S. three major equity indexes. AUD/USD is trading 0.16% higher at 0.6566, NZD/USD is also 0.23% higher at 0.6015 while USD/CAD slips 0.04%. Else, EUR/USD is down 0.16% and GBP/USD is down 0.04%.