Asian automaker stocks surged on Wednesday, led by those in Japan and South Korea, as Washington and Tokyo formalised a trade deal cutting threatened U.S. tariffs on Japanese goods, including cars.
President Donald Trump on Wednesday announced a "massive" U.S.–Japan deal, cutting planned tariffs on Japanese goods, including autos, to 15% from a proposed 25%. The reduction removes a major cost burden on outbound carmakers and improves export prospects.
Japan’s Nikkei 225 soared 3.5% to a one-year high, powered by sharp gains in carmakers.
Toyota (NYSE:TM) Motor (TYO:7203) led the rally with a 16% surge, while Honda (NYSE:HMC) Motor (TYO:7267) jumped over 12%. Nissan (TYO:7201) climbed 10%, while Mazda (TYO:7261) surged nearly 18%.
Subaru (OTC:FUJHY) Corp (TYO:7270) shares also advanced over 18%, while Mitsubishi Motors (TYO:7211) jumped 14%, adding to broad strength across Japan’s auto sector.
South Korean peers strengthened too, with Hyundai (OTC:HYMTF) Motor (KS:005380) up 7.5% and Kia Corp (KS:000270) rising 8%, as investors speculated Seoul may secure similar trade terms with the U.S.
China and India also saw auto-related gains. Hong Kong-listed NIO Inc (HK:9866) shares rose 9%, while Xpeng (NYSE:XPEV) Inc (HK:9868) shares gained 3%.
India’s Tata Motors (NSE:TAMO) shares rose 2.5%, while Mahindra & Mahindra (NSE:MAHM) added 1.5%.
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