Carmakers led the rally in Japan, where the Nikkei Stock Average surged 3.5% to its highest level in a year.

The U.S. dollar strengthened against the Swiss franc and euro but weakened versus the yen on Wednesday as positive sentiment from a new U.S. trade deal was offset by political uncertainty surrounding Japanese Prime Minister Shigeru Ishiba's future.

The dollar rose against the euro due to U.S. trade talk progress but fell against the yen, influenced by Japan's interest rate prospects. Political uncertainty in Japan and upcoming ECB decisions also affected currency markets,

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 USD/JPY and Japanese government bonds declined amid 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.

Bank of Japan Deputy Governor Shinichi Uchida said Wednesday that a tariff deal between Japan and the United States is a

Deal-signing at the German cloud computing and software giant SAP turned cautious in the second quarter, CFO Dominik Asam told CNBC.

Japanese shares surged Wednesday as President Trump unveiled a trade deal with Japan, promising significant investment and tariffs. While details are sparse, it offset mixed U.S. earnings caused by existing tariffs.

In Japan’s July 20 House of Councillors election, the Liberal Democratic Party (LDP), the largest political party in Japan, and its coalition partner, Komeito, failed to secure a majority. This is the first time since the founding of the LDP that it has not held a majority in at least one of Japan’s legislative houses.

Gold prices fell on Wednesday as a U.S.-Japan trade deal announced by U.S. President Donald Trump lifted risk appetite, while a rebound in the dollar and Treasury yields added further pressure. Spot gold was down 0.