Trump and Ishiba Ignite Japan Stock Rally, Sink Government Bonds

Japan’s Topix share index closed within a whisker of a record high and government bonds slumped after a long-awaited trade deal with the US spurred an explosive day for Tokyo’s financial markets.

Reports that Prime Minister Shigeru Ishiba planned to resign added to the drama, accelerating the rally in equities and the decline in bonds. The yen pared intraday losses after Ishiba denied that he was stepping down, though the news came too late for an auction of long-term debt that registered the worst demand metrics in over a decade.