News of Japanese prime minister Shinzo Abe's declining health has sent markets tumbling on Friday, reports revealed.
The announcement of Mr Abe's resignation, set to take place in 2021, as well as news from the US Federal Reserve sent the Nikkei 225 tumbling 1.66 percent but later recovered 88 points to 23,297.
The Shanghai composite rose 1.08 percent and the Hong Kong Hang Seng index climbed 161 points to 25,442, or 1.34 percent.
The news follows reports from the Nikkei Asian Review that Japan and the United Kingdom are set to ink a lucrative trade deal as soon as early September, with goods such as British cheese receiving tariff reductions.
“We have reached a consensus in many elements of the deal, including digital data and financial services that goes beyond the EU-Japan trade deal. We still wish to reach a formal agreement by the end of this month. Many major elements of the deal have been agreed,” a Downing Street spokesperson said.
According to CityAM, a Department for International Trade (DfIT) official said Japan was pressured to wrap up the deal by the end of August.
"We aim to reach agreement in principle in the coming weeks. We have always been clear that we will take the time needed to agree a deal that works for the UK,” a second official said in a statement.
The trade deal aims to lower tariffs on British agricultural exports and boost access for Japanese digital service firms to UK markets, a source close to Ms Truss said as quoted by the newspaper.
