Seoul will take a close look at the terms of a U.S.-Japan trade deal, South Korea's industry minister said on Wednesday, holding out the prospect of greater cooperation in the energy and industrial sectors ahead of key trade talks in Washington.

Asia-Pacific markets traded higher on Wednesday following Tuesday’s announcement by US President Donald Trump of a major tariff deal with Japan, including a 15% levy on Japanese exports, while US–China trade talks are also gaining momentum ahead of the August 12 deadline.

In his characteristic way, Trump says his Japan announcement is "massive", describing it as "the largest trade deal in history". He also claims his breakthrough meeting with Philippine President Ferdinand Marcos Jr was "beautiful".

Gold edged lower after a three-day rally as US President Donald Trump announced a highly-anticipated trade deal with Japan, signaling progress on fraught talks ahead of his August 1 tariff deadline.

South Korea will closely review the terms of the U.S.-Japan trade deal, the country’s industry minister said Wednesday, hinting at potential increased cooperation with the U.S. in energy and industrial sectors ahead of important trade talks in Washington.

The 15% tax on imported Japanese goods is a meaningful drop from the 25% rate that Trump, in a recent letter to Japanese Prime Minister Shigeru Ishiba, said would be levied starting Aug. 1.

US president Donald Trump reached a trade deal with Japan that will impose 15 per cent tariffs on US imports from the country, including its auto sector, while creating a $550 billion (€468.74 billion) fund backed by the Japanese to make investments in the United States.

President Trump announced Tuesday that his administration had wrapped up a massive trade agreement with Japan, two weeks after threatening the US ally with 25% tariffs.

The LDP’s loss in the upper house is another blow to Prime Minister Shigeru Ishiba, who has been struggling to close a trade deal with the Trump administration.

GBP/USD is having a tough time reclaiming 1.3500 on Tuesday as markets adopt a cautious stance. In the absence of high-tier data releases, investors refrain from taking large positions, while keeping an eye on Trump-Powell drama and US tariff talks.