Asian stocks opened on Thursday with a mixed view. Vietnamese shares surged to their highest level in more than three years as investors responded to the news that President Donald Trump had announced a new US-Vietnam trade deal.
Investors continued to evaluate the global economic landscape, and were awaiting a crucial US jobs report. While some markets grew more optimistic, others, such as Japan, fell.
Vietnam was the standout performer of early Asian trading. According to LSEG, the benchmark Vietnam Index increased 0.3% and reached its highest level in April 2022.
The rally was held after Donald Trump announced, through his Truth Social platform a new trading agreement with Southeast Asia.
Trump announced that the US will impose a tariff of 20% on products imported from Vietnam while Vietnam would levy a “Zero Tariff”. This announcement came as President Trump’s deadline to extend his 90-day tariff reprieve for the global market drew closer.
LSEG’s data shows that the Vietnamese dong fell to a new record low, 26,195 dollars per dong.
Analysts say that while the US-Vietnam trade agreement contributed to the rally of US stocks, this optimism is not shared by all Asian economies and markets.
Vishnu Varathan suggested that a cautious interpretation was more appropriate, as reported by CNBC. Varathan is the head of Mizuho Securities Asia Ex-Japan macro research.
In a note dated Thursday, he said: “First, this deal with Vietnam serves as a reminder that the Asian exporters are at a disadvantage due to an imbalance of leverage.”
Varathan added, however, that the depreciation in the Vietnamese dong may provide some protection against the effects of the US tariffs of 20%.
The performance of markets in Asia was also varied. Japan’s Nikkei 225 index fell 0.15% and Topix, a broader measure of the market in Japan, lost 0.21%.
The Kospi, South Korea’s stock exchange, rose 0.77% and the Kosdaq, a small-cap index, gained 0.5%. S&P/ASX 200 in Australia also rose, adding 0.13 percent.
Hong Kong’s Hang Seng Index fell 0.64% while the CSI 300 index on mainland China managed to gain 0.14%.
Indian markets set for modest gains
The Indian benchmark indices Sensex and Nifty are expected to open with a modest gain on Thursday. This is influenced by pockets of gains in other Asian market following the US-Vietnam Trade Agreement.
Investors are also a source of optimism, as they closely monitor the development of any potential US-India trade deal.
At 8:18 A.M., Gift Nifty futures traded at 25,584 indices. This is a small increase over the 25,574.50 close from yesterday. It could be a positive start to the day for domestic exchanges.
US market backdrop: records set, jobs data awaited
US stocks futures have not changed much in the early Asian morning hours, as traders prepare for June’s important jobs report.
Futures for the S&P 500 and Nasdaq100 were slightly higher. Futures linked to Dow Jones Industrial Average gained a small 21 points or less than 0.1%.
In the US overnight, three of the major averages closed with mixed results, though they did set some notable records. S&P 500 closed with another record and scored an intraday all-time high.
Nasdaq Composite closed at a new record of 20,393.13 with a gain of 0.94%.
Dow Jones Industrial Average however fell a mere 10.52 points or 0.02% to finish at 44 484.42.
The content of this post Asian markets: Vietnam Index at 3-Year High on US Deal; Sensex To Open Up may change as new information becomes available.
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