An emerging U.S.-Japanese trade deal could unlock major investment, avert a potential shock to the global economy and may deliver political wins for both U.S. President Donald Trump and Japanese Prime Minister Shigeru Ishiba,

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.

Wall Street climbed Wednesday after President Donald Trump reached a trade deal with Japan and hopes rose for more agreements by August 1.

Japan's trade agreement with the U.S. could serve as the benchmark for many other deals currently being negotiated with Washington, and the global economy could just about support the 15% level agreed overnight,

Investors will be hoping for a late flurry of more trade deals ahead of the Aug. 1 deadline for higher tariff rates to come into effect.

Trade pact would lower tariffs on car imports from Japan to 15% from 25%, spurring hope that other countries could get similar deals

Anti-establishment parties focused on wages, immigration and an unresponsive political elite struck a chord with working-age people in Japan.