U.S. President Donald Trump on Tuesday said the U.S. and Japan have struck a deal that will lower the hefty tariffs Trump had threatened to impose on goods from its Asian ally while extracting commitments for Japan to invest $550 billion US in the United States and open its markets to American goods.

Share markets climbed on Wednesday, buoyed by investor hopes of a wave of trade agreements with the United States after Japan struck a deal that lowers U.S. tariffs on its autos, sending Japanese stocks to a one-year high.