The S&P 500 and the Dow followed their global counterparts higher on Thursday, and Treasury yields reversed their three-day slide after a trade deal between the United States and Japan provided a welcome sign of progress in President Donald Trump's multi-front tariff negotiations.

Shares for European stocks jumped on prospects of a trade deal between the EU and US as Japan struck a deal to reduce tariffs on its autos.

President Trump announced deals with Japan, Philippines and Indonesia, but many other countries have yet to clinch agreements.

Japan's embattled prime minister Shigeru Ishiba, fresh off a crushing defeat in upper house elections over the weekend, will not be in a position of strength to negotiate a favorable trade deal with the U.S., analysts said.

Akazawa is visiting Washington to hold further talks with the United States, as Tokyo hopes to clinch a deal by an August 1 deadline that will avert Trump's tariff of 25% on imports from Japan. Earlier on Tuesday,

Japanese Prime Minister Shigeru Ishiba denied reports he plans to announce his resignation over a historic defeat of his ruling party in a weekend election.