Relief. That was the overriding emotion in the Japanese financial markets and society at large today when, after months of speculation and discord, a trade deal was finally struck between President Trump and Japanese Prime Minister Shigeru Ishiba’s trade representative Ryosei Akazawa.

The Japanese envoy, who has made eight trips to Washington in pursuit of an agreement, finally pulled it off just a week before the 1 August deadline (after which a hefty 25 per cent levy would have been imposed on all Japanese goods to the US). With the deal, that will be reduced to a probably manageable and reciprocal 15 per cent. Included in the package was an agreement that Japan would invest $550 billion in the US (details to be announced).

The immediate market reaction to the agreement was very positive. Asian (not just Japanese) stocks were significantly up, with the automakers doing especially well. The Nikkei rose 3.5 per cent and finished at around 41,000, just 1,000 points off its record high. Futures trading on the Osaka exchange rose by around 4 per cent. All told, it was a good day for the money men, though with the details still be clarified, how long this will be sustained remains to be seen.

For those not........

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