Japanese business leaders welcomed the signing of the world's largest trade deal by Tokyo and 14 other Asia-Pacific partners on Sunday, expecting a boost in trade and investment in the region and strengthening of supply chains.

"The signing is extremely significant toward realizing a free and open international economic order" at a time when some countries are becoming inward-looking due to the novel coronavirus pandemic, said Hiroaki Nakanishi, chairman of Keidanren, Japan's largest business lobby.

The Regional Comprehensive Economic Partnership, covering some 46% of Japan's total trade, will be the country's first trade deal with both China, its largest trading partner, and South Korea, its third largest.