Japan stocks jump, bonds slide after Trump says trade deal reached

TOKYO – Japanese automaker shares led the Nikkei share average higher on Wednesday, while bonds slid after US President Donald Trump said he had reached a trade deal with Tokyo.

The Nikkei leapt 2% in early trading, with the Tokyo Stock Exchange’s transport equipment index surging 7%. Toyota Motor soared 10%.

Benchmark 10-year Japanese bond futures 2JGBv1 tumbled as much as 0.92 yen to 137.68 yen, the lowest since March 28.

Trump on Tuesday said the US and Japan had struck a trade deal that includes a 15% tariff that will be levied on US imports from the Asian country.

(Reporting by Kevin Buckland; Editing by Himani Sarkar)