After three months of negotiations, Japan and the United States reached a realistic deal that is expected to minimize the impact of US tariffs on the Japanese economy. The deal sets a 15 percent US reciprocal tariff on imports from Japan,

Japan has a done a trade deal with Washington which will cut tariffs on the crucial car sector to 15%, in exchange for $550 billion of Japanese investment in the U.S.

"This more positive trade news has really helped to ease investor fears that tariffs are about to snap back higher on August 1," Deutsche Bank's Jim Reid said.