The unexpected US-Japan trade deal announced Wednesday may end up being a tipping point for the fortunes of many sectors in the stock market — with losers turning into winners, and vice versa.

U.S. President Donald Trump struck a trade deal with Japan that lowers tariffs on auto imports and spares Tokyo from punishing new levies on other goods in exchange for a $550 billion package of U.S.-bound investment and loans.

Global shares have rallied, with Tokyo's benchmark Nikkei 225 index finishing 3.5% higher after Japan and the U.S. announced a deal on President Donald Trump's tariffs.

Shares of Japanese automakers surged after U.S. auto tariffs were reportedly lowered to 15% from the current 25%, according to public broadcaster NHK, citing a Japanese official. Stocks of Japan's Honda jumped more than 8%, while Toyota rose above 11%. Nissan jumped over 8%, and Mazda Motor surged over 17%. Mitsubishi Motors popped over 13%.

European shares climbed on Wednesday, buoyed by hopes of a trade agreement between the European Union and United States after Japan struck a deal that lowers tariffs on its autos, sending Japanese stocks to a one-year high.

Japan trade deal boosts Japanese equities and benefits Franklin FTSE Japan ETF, but faces issues with tariffs and market trends. Click for my FLJP update.

Japanese shares soared on Wednesday after President Donald Trump said he had struck a trade deal with Tokyo. The flagship Nikkei 225 index closed 3.5% higher, with car stocks including Toyota, Honda,

Shares in global carmakers surged after a U.S. trade agreement with Japan sparked optimism for the auto industry. Japanese auto stocks were particularly buoyant, with Toyota closing up 14%, its bigges

Asian shares are lower after Wall Street inched to more records as gains for Alphabet and artificial-intelligence stocks offset a steep tumble for EV-maker Tesla.