Wall Street climbed on Wednesday after President Donald Trump secured a trade deal with Japan, sparking optimism for a flurry of new agreements as the August 1 deadline looms.

Japan trade deal boosts Japanese equities and benefits Franklin FTSE Japan ETF, but faces issues with tariffs and market trends. Click for my FLJP update.

The market had been rattled after the EU signalled it may pursue countermeasures against US tariffs, dampening expectations for a breakthrough in negotiations ahead of the August 1 deadline.

Gold prices fell on Wednesday as a U.S.-Japan trade deal announced by U.S. President Donald Trump lifted risk appetite, while higher Treasury yields added further pressure. Spot gold was down 0.2% at $3,

News of a US-Japan trade deal, though details remain vague, sent equities higher, with the Nikkei rising 3.5% during the morning session. However, the USDJPY and Japanese government bonds declined as fiscal concerns and reports of Prime Minister Shigeru Ishiba stepping down soon

Japan is facing trade and political uncertainty after a historic defeat for the prime minister’s ruling party. Shigeru Ishiba is trying to buy time for his premiership following this past weekend’s election, which left the ruling bloc three seats short of a majority in the upper house.

Japan's trade agreement with the U.S. could serve as the benchmark for many other deals currently being negotiated with Washington, and the global economy could just about support the 15% level agreed overnight,

The Japanese yen turned weaker following initial gains after the U.S. announced a trade deal with Japan.