This content was published on

July 24, 2025 – 02:25

(Bloomberg) — Asian equities climbed for a sixth consecutive day as signs the US will do more trade deals after striking a pact with Japan injected fresh vigor into stocks.

The MSCI regional stocks gauge rose 0.7%, the longest winning streak since January, as Japanese indexes jumped more than 1.3% at the open. The S&P 500 ended 0.8% higher to set a third consecutive daily closing record. Treasuries edged lower as demand for haven assets waned in Wednesday’s trading.

Alphabet Inc. shares climbed in after-hours trading on better-than-expected revenue while Tesla Inc. slumped 4.4% as Elon Musk warned of a ‘few rough quarters’ ahead after sales fell the most in a decade. SK Hynix shares rose 3.3% after operating profit beat estimates.

The gains in the stock market followed reports the US was closing in on an agreement with the European Union that would set a 15% tariff for most products after the accord with Japan. Progress on trade deals offered validation for investors betting Washington would adopt a pragmatic approach to trade policy before tariffs would meaningfully impact corporate profits.  

“Momentum is building with trade deals a week ahead of the Aug. 1 deadline,” said Mark Hackett at Nationwide. “The adage ‘don’t short a dull tape’ seems apropos, given the steady move higher for equities with low volatility.”

President Donald Trump suggested that he wouldn’t go below 15% as he sets so-called “reciprocal” tariff rates ahead of an Aug. 1 deadline. 

Trump’s top trade negotiators hailed their approach toward addressing grievances with Japan as a possible incentive for the EU.

Commerce Secretary Howard Lutnick said Japan’s pledge of billions in US investments “could be” a model for the EU. Treasury Secretary Scott Bessent stopped short of saying the bloc can win the same sort of deal. Later Thursday, the European Central Bank is scheduled to hand down a rate decision.

“With the Aug. 1 deadline looming, investors have been encouraged by the recent trade-deal announcements,” said Ian Lyngen and Vail Hartman at BMO Capital Markets. “The progress on the trade war will provide clarity and help the market move forward to incorporate the new global trade environment.”

Meanwhile, bond traders are boosting bets that the Federal Reserve will slash rates more aggressively next year, pricing about 75 basis points of cuts. That compares to 25 basis points projected in April.

Trump said the Fed board “should act” on lowering rates, “but they don’t have the courage to do so.” Meantime, Treasury Secretary Bessent said that there’s “no rush” to identify a successor to Fed Chair Jerome Powell.

In other corporate news, Trump said he considered attempting to break up Nvidia Corp. to increase competition in artificial intelligence chips before finding out “it’s not easy in that business.” Nvidia shares rose almost 1% in after-hours trading.

Some of the main moves in markets:

Stocks

  • S&P 500 futures were little changed as of 9:22 a.m. Tokyo time
  • Hang Seng futures fell 0.1%
  • Japan’s Topix rose 1.3%
  • Australia’s S&P/ASX 200 was little changed
  • Euro Stoxx 50 futures rose 1.1%

Currencies

  • The Bloomberg Dollar Spot Index was little changed
  • The euro was unchanged at $1.1771
  • The Japanese yen was little changed at 146.40 per dollar
  • The offshore yuan was little changed at 7.1520 per dollar

Cryptocurrencies

  • Bitcoin rose 0.9% to $118,982.01
  • Ether rose 2% to $3,641.25

Bonds

  • The yield on 10-year Treasuries was little changed at 4.38%
  • Japan’s 10-year yield advanced nine basis points to 1.590%
  • Australia’s 10-year yield advanced four basis points to 4.33%

Commodities

  • West Texas Intermediate crude rose 0.3% to $65.47 a barrel
  • Spot gold was little changed

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Richard Henderson.

©2025 Bloomberg L.P.