Japan is the world's fourth largest economy, meaning it accounts for a large part of global trade and growth. Tokyo imports a great deal of energy and food from overseas and is dependent on exports including electronics, machinery and motor vehicles. The US is its biggest export market.

Carmakers led the rally in Japan, where the Nikkei Stock Average surged 3.5% to its highest level in a year.

The trade deal that US President Donald Trump celebrated as the largest in history becomes the more puzzling the more layers are peeled back. The centerpiece is Tokyo’s pledge to set up a $550 billion US investment fund and the lack of detail is raising questions about the viability of an agreement that’s been floated as a potential template for other major trading partners.