Shares of Japanese car manufacturers soared on Wednesday, with Toyota rising by 11 per cent and Honda climbing 9 per cent, following U.S. President Donald Trump’s announcement of a trade agreement with Japan that involves a 15% tariff.
Meanwhile, other auto stocks like Nissan rose more than 7 per cent, and Mazda Motor saw a sharp jump of over 16 per cent. Mitsubishi Motors also climbed more than 12 per cent.
South Korean automaker Hyundai’s shares increased by over 5 per cent on the news, while Kia recorded a modest rise of 0.2 per cent.
On the other hand, Japan’s Nikkei 225 jumped 2.5 per cent to reach 40,731.86 as of 0121 GMT, driven by an 8.4 per cent surge in the Tokyo Stock Exchange’s transport equipment index.
NHK stated the new 15 per cent tariff rate would apply to Japanese vehicles, though it remains uncertain whether the lower rate will be extended to automakers from other countries.
(This is a developing story)
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