Bloomberg Daybreak: Asia Edition S&P 500 Hits Record Ahead of US Jobs Data, Trump Finalizes Japan Deal
Sep 5, 2025
David Chao, a Global Market Strategist at Invesco, shares his insights on the recent boom in the S&P 500 and the positive ripple effects in Asian markets. He discusses how the trade agreement between the U.S. and Japan is reshaping the automotive sector and influencing investor confidence. The conversation touches on the complexities of tariffs affecting Japan’s economy and the implications for global markets. Chao also highlights the cautious market sentiment ahead of crucial U.S. job data and the strategic moves investors should consider.
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Record S&P And Japan Trade Boost
- The S&P 500 hit a record as markets priced in Fed easing ahead of the U.S. August jobs report.
- Japan's EO on tariffs spurred gains in Japanese equities, notably autos like Toyota.
EO Stops Tariff Stacking For Auto Industry
- Trump's executive order implements the US-Japan trade deal and prevents tariff stacking, crucial for Japanese auto-makers.
- Implementation can begin within days, reducing immediate trade uncertainty for key firms.
Treasury Yields Signal Fed Easing
- The US two-year Treasury yield fell to its lowest in about a year, reflecting growing odds of Fed cuts.
- Money markets nearly fully price a September rate cut and expect multiple cuts by year-end.