Global stock markets surge, bolstered by positive expectations of additional international trade agreements following the US-Japan tariff agreement
In a continuation of the positive trend, Asian equities rose for a sixth consecutive session on Thursday, buoyed by optimism about potential trade deals. The surge was most notable in South Korea's Kospi, which added 0.2%, following the country's economy expanding at a 0.6% annual rate in the last quarter.
Elsewhere in the region, Japan's Nikkei 225 surged 1.6% due to enthusiasm over the trade deal with the U.S., which was signed at a 15% rate. In contrast, Australia's S&P ASX 200 slid 0.3%, while Taiwan's Taiex gained 0.2% and India's BSE Sensex shed 0.7%.
The U.S. markets also experienced growth, with the Dow Jones Industrial Average rallying 507 points, or 1.1%, and the Nasdaq composite climbing 0.6%. The S&P 500 added 0.8% to reach a new all-time high.
The global market upturn is partially attributed to ongoing bilateral trade negotiations and reciprocal tariff adjustments between key countries, including Japan, Europe, Indonesia, and the Philippines. As of late July 2025, no comprehensive final trade deals have been publicly finalized between these nations and the U.S., but active negotiations and tariff adjustments indicate ongoing efforts to improve bilateral trade terms.
In the case of Japan, active trade negotiations are ongoing, with the U.S. recently setting a reciprocal tariff rate of 25% on Japanese goods, effective August 1, 2025. Talks with the European Union are also underway, but no definitive trade deal completion has been announced, and tariff details remain part of ongoing discussions.
Trade talks with Indonesia are in progress, with the U.S. imposing a 32% reciprocal tariff rate to take effect August 1, 2025. Similarly, the U.S. is negotiating actively with the Philippines, but like with others, talks are ongoing without a finalized comprehensive agreement reported.
Meanwhile, the euro slid to $1.1751, and Brent crude rose 84 cents to $69.35 per barrel. Traders are already looking for the next potential trade deal, with possibilities ranging from Europe to India to China.
In other news, the U.S. dollar climbed to 146.60 Japanese yen, and the European Central Bank is expected to hold off on making another interest rate cut, waiting to measure the economic impact of higher U.S. tariffs. U.S. benchmark crude oil added 90 cents to $66.15 per barrel.
The Nomura Group stated that the 19% tariff rates set by the U.S. for Indonesia and the Philippines pose downside risks to their respective growth outlooks. European leaders called for concrete progress in addressing the bloc's trade deficit with China at a summit with President Xi Jinping.
As the trade negotiations continue to unfold, further updates are expected, and markets will likely remain closely tied to the progress and outcome of these discussions.
The business community in Seattle, Washington, might benefit from a potential trade deal between the United States and Indonesia, as the 19% tariff rates set by the U.S. for Indonesian goods could favor local businesses in the finance and economy sectors. Meanwhile, Microsoft, a significant player in the Seattle business landscape, may also be impacted, considering the global nature of its operations. The ongoing trade talks between the U.S. and the European Union could also have implications for businesses in Seattle, given the potential impact on the tech industry and the region's close ties with Europe.
