Japan’s surprise trade deal with the U.S. sent its markets on a wild ride, pushing stocks to all-time highs and fueling a selloff in government bonds.
Automakers’ shares led a market-wide surge after U.S. President Donald Trump announced the deal on Wednesday. The broad Topix index hit a record close. Investors, finally having some good news, seemed to largely ignore thorny questions about the details of the trade deal, let alone the tenuous position of Prime Minister Shigeru Ishiba following a recent election setback.
But as the dust settles and focus returns to problems closer to home, investors are questioning whether the rally was a sign of things to come — or just a blip for a market that is facing multiple sources of volatility in the coming weeks and months.
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