Doha: European stocks closed higher on Wednesday, near their highest levels in two weeks, led by the auto sector, as investors anticipated a possible agreement between the US and the European Union (EU) to ease the impact of tariffs.

According to Qatar News Agency, the pan-European Stoxx 600 index closed up 1 percent, marking its biggest one-day gain in nearly a month. This rise followed Japan's recent trade agreement with the US, which sparked a surge in auto stocks earlier in the day.

Most major stock exchanges in the region, including Germany's DAX and France's CAC 40, along with major Italian stock indices, experienced an increase of more than 1.3 percent.

European auto stocks saw a significant rise of 3.7 percent, registering their biggest daily gain in nearly a month. This movement was mirrored by sharp gains among some Asian rivals.

Shares of European automakers, including Stellantis, Mercedes-Benz, Volkswagen, and Porsche, increased between 6.1 and 7.3 percent.