<h1>Tariff reduction prompts market optimism as trade pact signals boost Asian equities and raise expectations of further deals.</h1> A US-Japan tariff agreement reduced a previously threatened higher import tax to a negotiated lower rate, prompting optimism for further bilateral trade pacts and lifting Asian equities. The deal changed trade-policy risk perceptions by pausing higher tariffs, influencing investor expectations, and affecting currency and commodity markets without asserting long-term statutory changes.