U.S. President Donald Trump struck a trade deal with Japan that lowers tariffs on auto imports and spares Tokyo from punishing new levies on other goods in exchange for a $550 billion package of U.S.-bound investment and loans.

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.

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