MANILA, Philippines (AP) — Asian shares rose Thursday, buoyed by optimism that the U.S.-Japan tariff agreement will be followed by more trade deals. Japan’s Nikkei 225 surged nearly 2% to 41,983.50. The Shanghai Composite Index added 0.4% to 3,595.58 while Hong Kong’s Hang Seng index rose 0.4% to 25,631,08.

The Vanguard S&P 500 ETF (NYSEMKT: VOO) is looking like it wants to hit a new all-time high today as shares rise 0.4% premarket. And what's driving today's rise? In a word: Japan. President Trump announced on Truth Social last night that Japan has signed "perhaps the largest Deal ever made" with the U.

With the powerful Japanese car industry being a particular focus of the deal, Toyota Motor ( TM 13.64%) was a major beneficiary of that sentiment. The storied automaker 's stock popped by nearly 14% over the course of that day, easily beating the 0.8% bump of the S&P 500 index.

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.

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,

The Dow, S&P 500, and Nasdaq rose as the stock market reacted to the U.S.-Japan trade deal and digested more earnings reports. The S&P 500 and Nasdaq hit closing records.

World markets are mixed after U.S. stock indexes hit new records. Oil prices fell and U.S. futures were little changed.

Dow Jones futures were little changed overnight, along with S&P 500 futures and Nasdaq futures, as President Donald Trump announced a Japan trade deal.SAPSAP and Texas InstrumentsTXN led earnings after the close.