Japan's Nikkei 225 was set to open higher after U.S. President Donald Trump formalized a lower tariff on Japanese auto imports at 15%.

This comes after a U.S. federal appeals court on Friday ruled that most of President Donald Trump's global tariffs are illegal.

Japan's Nikkei 225 was set to open higher after U.S. President Donald Trump formalized a lower tariff on Japanese auto imports at 15%.

The formalisation of a deal that was announced in July eases uncertainty for Japan's motor industry giants.

The deal was agreed in July after months of talks, with Washington and Tokyo continuing to haggle over details for weeks before finalizing the terms.

Trump orders cut in US tariffs on Japanese cars, confirms $550 billion investment, and increased agricultural purchases.

President Donald Trump announced a deal with Japan which swaps a 15% baseline tariff for an increase in American exports and a multi-billion-dollar investment.