(Sharecast News) - Markets across the Asia-Pacific region ended Thursday on a mixed note as investors digested US president Donald Trump's announcement of a new trade deal with Vietnam.
Trump said overnight that the US would impose a 20% tariff on Vietnamese imports, while Vietnam would impose no reciprocal tariff.
The news came ahead of the end of Trump's 90-day tariff reprieve, due on 9 July.
"Asian stock markets saw a modest increase in anticipation of a US jobs report, as investors look for new data following recent indications that Trump's trade war is negatively impacting the US economy," said TickMill market strategy partner Patrick Munnelly.
"In the US, equity index futures gained after the S&P 500 reached another all-time high on Wednesday, buoyed by Trump's announcement of a trade deal with Vietnam.
"Other Asian nations are expressing frustration over the challenging discussions with the US, partly due to the lack of clarity about the White House's objectives."
Munnelly noted that South Korean president Lee Jae Myung said on Thursday that he could not confirm whether tariff negotiations would be finalised by next Tuesday, while Japan was citing national interests as negotiations with Washington faced difficulties.
"Thursday saw muted Treasury yields movement - yields had increased in the prior session due to significant selling in the UK, where concerns about chancellor [Rachel] Reeves' future reignited discussions about the nation's fiscal situation.
"In Japan, there was strong demand for 30-year government bonds at an auction, indicating some progress in addressing volatility in the debt market.
"These cross-asset movements highlighted a sense of cautious optimism as traders navigate uncertainty ahead of the jobs data, which will influence future interest rate direction."
Markets mixed as investors weigh Vietnam tariff announcement
Japan's Nikkei 225 edged up 0.06% to 39,785.90, with gains led by Hino Motors, which surged 7.81%, followed by Nissan Motor and Minebea Mitsumi, up 5.69% and 5.61%, respectively.
The broader Topix rose 0.1% in Tokyo, to 2,828.99.
Chinese markets were firmer, with the Shanghai Composite rising 0.18% to 3,461.15 and the Shenzhen Component climbing 1.17% to 10,534.58.
Tech and industrial names were standouts, with Xi'an Bright Laser Tech jumping 17.05%, Liuzhou Iron & Steel adding 10.09%, and EGing Photovoltaic Technology up 10.06%.
South Korea's Kospi 100 posted one of the strongest regional performances, advancing 1.71% to 3,148.21.
Hyundai Steel soared 16.18%, EcoPro Materials rose 12.08%, and Posco added 8.33% on strong sector sentiment.
In contrast, Hong Kong's Hang Seng Index fell 0.63% to 24,069.94, dragged down by Xiaomi, New Oriental Education, and Alibaba Group, which dropped 3.41%, 2.99%, and 2.93%, respectively.
Australia's S&P/ASX 200 dipped 0.02% to 8,595.80.
Losses in education and biotech stocks weighed on the index, with G8 Education down 7.44%, Mesoblast off 3.58%, and REA Group losing 3.43%.
New Zealand's S&P/NZX 50 declined 0.62% to 12,704.48.
Fisher & Paykel Healthcare slipped 2.93%, while Summerset Group and Infratil fell 2.18% and 1.79%, respectively.
In currency markets, the dollar was last up 0.14% on the yen to trade at JPY 143.86, while it gained 0.09% against the Aussie to AUD 1.5202, and climbed 0.19% on the Kiwi, changing hands at NZD 1.6452.
Oil prices softened, with Brent crude futures last down 0.61% on ICE to $68.69 per barrel, and the NYMEX quote for West Texas Intermediate down 0.64% to $67.02.
US-Vietnam trade deal announced as China's services sector slows
At the top of the agenda on Thursday was news that Washington has struck a trade agreement with Vietnam that includes a 20% tariff on Vietnamese imports into the US, according to a statement by president Donald Trump.
In return, the US would gain tariff-free access to Vietnamese markets.
Trump also announced that Vietnam had agreed to impose a 40% tariff on goods transshipped through its territory from other countries - a move aimed at curbing practices used to bypass existing trade barriers, particularly from China.
The announcement came amid broader trade and economic challenges in the region.
In China, private sector data showed the country's services sector grew at a slower pace in June, with the Caixin services purchasing managers' index (PMI) easing to 50.6 from 51.1 in May, below the expected 51.0.
Although still in expansion territory, the reading pointed to weakening demand at home and abroad.
Analysts from Caixin Insight noted that subdued overseas orders and soft domestic spending contributed to the slowdown, despite a recent rebound in manufacturing activity.
In Australia, new trade data for May revealed a sharp drop in the nation's trade surplus.
The balance came in at AUD 2.238bn, significantly below the AUD 5bn forecast and down from April's AUD 4.859bn.
Reporting by Josh White for Sharecast.com.
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