Asian Markets Mixed Ahead of US Jobs Report and Trump Tax Vote
Asian stock markets were subdued on Thursday as investors awaited a crucial US jobs report and the outcome of congressional deliberations on former President Donald Trump’s proposed tax-cutting bill.
Overnight, Wall Street advanced to fresh record highs after Trump revealed a new trade deal with Vietnam, featuring a 20% tariff on exports to the US—less severe than the previously threatened 46%, but still a significant hike. Vietnamese equities responded positively, with the benchmark index rising 0.5% to its highest level since April 2022. However, the Vietnamese dong slipped to a record low of 26,229 per US dollar.
Elsewhere in Asia, sentiment was mixed:
-
Japan’s Nikkei 225 inched up 0.1% to 39,794.16, despite ongoing challenges in trade talks with the US.
-
South Korea’s Kospi rose 1% to 3,106.46, though President Lee Jae Myung cautioned that tariff negotiations remain difficult and may not conclude by next Tuesday.
-
Australia’s S&P/ASX 200 dipped 0.1% to 8,589.30.
-
Hong Kong’s Hang Seng fell 1% to 23,976.41.
-
China’s Shanghai Composite edged up 0.1% to 3,057.36, despite data showing that the country’s services sector grew at its slowest pace in nine months during June.
On Wall Street, the Dow Jones Industrial Average finished flat at 44,484.42. The S&P 500 climbed 0.5% to 6,227.42, while the Nasdaq Composite gained 0.9% to 20,393.13.
In the bond market, the yield on 10-year US Treasuries rose to 4.284% from 4.251% the previous evening, reflecting cautious optimism and shifting expectations ahead of key US economic data.
