The Nikkei Stock Average jumped 3.5%, reaching its highest closing level in roughly a year. + Automakers such as Toyota and Honda led the way, surging by double-digit percentages, as the [U.S.-Japan d

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.

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.

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

Asia-Pacific markets traded mixed on Tuesday, despite overnight gains on the S&P 500 and Nasdaq, driven by optimism over strong corporate earnings. Investor caution intensified ahead of the August 1st U.

The downside risk to the USD/JPY exchange rate has become greater since Japan's election and traders should short the cross with a target of 142. That's according to a new note by a team of forex strategists at Nomura led by Yusuke Miyairi.