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

Japan's Honda stock jumped more than 11%, while Toyota surged over 15%. Shares of South Korean carmaker Hyundai and Kia also rose on the announcement. Shares of Japanese automakers surged after Japanese Prime Minister Shigeru Ishiba said that U.S. auto tariffs were lowered to 15% from the current 25%, Reuters reported.

Chinese electric vehicle (EV) maker NIO (NYSE:NIO) surged nearly 11% after unveiling its Onvo L90, a three-row electric SUV designed to compete with Tesla’s (NASDAQ:TSLA) Model Y, signaling its push into the mass-market EV segment.