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July 24, 2025 – 04:00
(Bloomberg) — Asian equities posted their longest winning streak since January as signs the US may pursue further trade deals following its pact with Japan injected fresh momentum into stock markets.
The MSCI Asia-Pacific index rose 1%, a sixth consecutive day of gains, as benchmarks in Japan jumped 1.9%. The S&P 500 ended 0.8% higher to set a third straight daily closing record. Treasuries edged lower for a second day with the yield on the 10-year rising almost one basis point to 4.39%.
The dollar retreated after US Commerce Secretary Howard Lutnick said Federal Reserve Chair Jerome Powell “has got to go.” The yen strengthened.
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.
“The deal with Japan and the potential 15% deal with the EU will spur confidence for investors that tariff affects won’t be as bad as once feared,” said Nick Twidale, chief market analyst at AT Global Markets. “Caution will still come from negotiations with the US and China, but last night’s updates will certainly give the market hopes that a similar number will be on the cards in those talks.”
Over the past two months, Trump has struck key trade agreements, including a pact with Japan and progress toward resolving disputes with China, signaling a de-escalation in global trade tensions. These moves have reassured investors, easing fears of a prolonged trade war and fueling gains across global markets.
The market’s so-called fear gauge — the VIX — collapsed to 15 after topping 52 at the height of April’s tariff-fueled turmoil.
Trump also suggested that he wouldn’t go below 15% as he sets so-called “reciprocal” tariff rates ahead of an Aug. 1 deadline.
“A deal with the EU within the next week would almost entirely defuse the impact of the Aug. 1 tariff expiry deadline,” said Tony Sycamore, a market analyst at IG Australia.
The US will evaluate the implementation of the trade agreement every quarter, and if Trump is unhappy, tariffs will go back to the 25% rate both for cars and the rest of Japan’s products, US Treasury Secretary Scott Bessent warned. Bessent is scheduled to meet with Chinese officials in Stockholm next week for discussion aimed at extending a tariff truce.
In corporate earnings, 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 as much as 3.7% after operating profit beat estimates.
Elsewhere, 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 rose 0.1% as of 10:57 a.m. Tokyo time
- Japan’s Topix rose 1.9%
- Australia’s S&P/ASX 200 was little changed
- Hong Kong’s Hang Seng rose 0.1%
- The Shanghai Composite rose 0.1%
- Euro Stoxx 50 futures rose 1.4%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.1775
- The Japanese yen rose 0.4% to 145.92 per dollar
- The offshore yuan was little changed at 7.1493 per dollar
Cryptocurrencies
- Bitcoin rose 1% to $119,158.12
- Ether rose 2.2% to $3,648.48
Bonds
- The yield on 10-year Treasuries was little changed at 4.38%
- Japan’s 10-year yield advanced one basis point to 1.600%
- Australia’s 10-year yield advanced three basis points to 4.33%
Commodities
- West Texas Intermediate crude rose 0.3% to $65.45 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.