This content was published on

July 24, 2025 – 03:17

(Bloomberg) — Asian equities posted their longest winning streak since January as signs the US may pursue further trade deals following its pact with Japan injected fresh momentum into stock markets.

The MSCI Asia-Pacific index rose 0.9%, a sixth consecutive day of gains, as benchmarks in Japan jumped more than 1.5%. The S&P 500 ended 0.8% higher to set a third straight daily closing record. Treasuries edged lower for a second day with the yield on the 10-year rising almost 1 basis point to 4.38%. Gold steadied after dropping more than 1% in the previous session amid weak demand for haven assets.

The gains in the stock market followed reports the US was closing in on an agreement with the European Union that would set a 15% tariff for most products after the accord with Japan. Progress on trade deals offered validation for investors betting Washington would adopt a pragmatic approach to trade policy before tariffs would meaningfully impact corporate profits.  

“Momentum is building with trade deals a week ahead of the Aug. 1 deadline,” said Mark Hackett at Nationwide. “The adage ‘don’t short a dull tape’ seems apropos, given the steady move higher for equities with low volatility.”

 

Over the past two months, Trump has struck key trade agreements, including a pact with Japan and progress toward resolving disputes with China, signaling a de-escalation in global trade tensions. These moves have reassured investors, easing fears of a prolonged trade war and fueling gains across global markets.

The market’s so-called fear gauge — the VIX — collapsed to 15 after topping 52 at the height of April’s tariff-fueled turmoil.

Trump also suggested that he wouldn’t go below 15% as he sets so-called “reciprocal” tariff rates ahead of an Aug. 1 deadline. 

“A deal with the EU within the next week would almost entirely defuse the impact of the Aug. 1 tariff expiry deadline,” said Tony Sycamore, a market analyst at IG Australia.

Also, US Treasury Secretary Scott Bessent is scheduled to meet with Chinese officials in Stockholm next week for discussion aimed at extending a tariff truce.

In corporate earnings, Alphabet Inc. shares climbed in after-hours trading on better-than-expected revenue while Tesla Inc. slumped 4.4% as Elon Musk warned of a ‘few rough quarters’ ahead after sales fell the most in a decade. SK Hynix shares rose as much as 3.7% after operating profit beat estimates.

Elsewhere, Trump said he considered attempting to break up Nvidia Corp. to increase competition in artificial intelligence chips before finding out “it’s not easy in that business.” Nvidia shares rose almost 1% in after-hours trading.

Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.1% as of 10:10 a.m. Tokyo timeHang Seng futures fell 0.1%Japan’s Topix rose 1.6%Australia’s S&P/ASX 200 was little changedEuro Stoxx 50 futures rose 1.4%

Currencies

The Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.1774The Japanese yen rose 0.2% to 146.19 per dollarThe offshore yuan was little changed at 7.1461 per dollar

Cryptocurrencies

Bitcoin rose 0.8% to $118,953.47Ether rose 2% to $3,642.61

Bonds

The yield on 10-year Treasuries was little changed at 4.39%Japan’s 10-year yield was little changed at 1.595%Australia’s 10-year yield advanced four basis points to 4.34%

Commodities

West Texas Intermediate crude rose 0.4% to $65.49 a barrelSpot gold was little changed

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Winnie Hsu and Richard Henderson.

©2025 Bloomberg L.P.