Asian stocks mixed as traders shrug at US-Vietnam trade deal
HONG KONG (AFP) Stocks struggled in Asia on Thursday as investors gave a lukewarm reception to the US-Vietnam trade deal, while the dollar eased ahead of key US jobs data that could impact the Federal Reserve's interest rate plans.Attention was also on Washington as Republicans struggled to push Donald Trump's tax-slashing budget bill through the House of Representatives amid warnings it would inflate an already ballooning national debt.While the Vietnam agreement provided hope that other governments could reach agreements with Washington, dealers were cautious as it emerged that the country must still pay tolls of as much as 40 per cent for certain exports.With less than a week left until the US president's July 9 deadline to hammer out pacts to avoid his "reciprocal" levies, just three countries have done so - stoking worries his "Liberation Day" measures will kick in and spark fresh market turmoil.In a post on his Truth Social platform, Trump wrote: "It is my Great Honour to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam."He said that under the "Great Deal of Cooperation", imports of Vietnamese goods will face a 20 per cent US tariff, while goods that pass through Vietnam to circumvent steeper trade barriers -- so-called "transshipping" -- will see a 40 per cent tariff.The news means Hanoi will avoid paying the 46 per cent tolls initially applied on the April 2 tariff blitz, though the cost of goods going into America will still surge.Hanoi traders were unimpressed, with the Vietnamese capital's stock market down in early trade.A third record close in four days for Wall Street's S&P 500 and Nasdaq also did little to lift buying sentiment elsewhere in Asia, with Hong Kong, Shanghai, Tokyo, Sydney and Wellington all falling.Singapore, Seoul, Taipei, Manila and Jakarta edged up.Trump said this week he will not push back his deadline to make more deals though he and some of his officials have said a number were in the pipeline.South Korean President Lee Jae Myung said Thursday his administration was doing its "utmost" to secure an agreement. However, he warned that "it's certainly not easy, that much is clear. And to be honest, I can't say with confidence that we'll be able to wrap everything up" by the deadline. The dollar continued to struggle as traders boosted rate cut bets after data showed the private sector unexpectedly shed jobs last month for the first time since March 2023, suggesting the labour market was slackening.The reading came a day before the much-anticipated non-farm payrolls report that is used by the Fed to guide policy.Traders widely expect the bank to cut rates twice this year but there is growing speculation that it could make three, with one possibly at the July meeting."Payrolls is the focus (Thursday), where consensus is for a 110,000 payrolls gain and a slight lift in the unemployment rate to 4.3 per cent," said National Australia Bank's Taylor Nugent."It would take more than that to dent (policy board) members' comfort (that) the labour market is resilient enough to wait beyond July for more clarity on inflation and the outlook."Meanwhile, US Treasury yields rose amid fresh worries in the bond market over Trump's "Big, Beautiful Bill" that cuts taxes as well as spending on programmes such as Medicaid.Independent analysis suggests it will add $3 trillion to the already colossal US debt mountain, which observers warn could deal a fresh blow to the world's top economy.
Key figures at around 0230 GMT Tokyo - Nikkei 225: DOWN 0.1 per cent at 39,732.63 (break)Hong Kong - Hang Seng Index: DOWN 1.1 per cent at 23,948.73Shanghai - Composite: DOWN 0.1 per cent at 3,450.80Euro/Dollar: UP at $1.1808 from $1.1801 on WednesdayPound/Dollar: UP at $1.3650 from $1.3634Dollar/Yen: DOWN at 143.58 Yen from 143.65 YenEuro/Pound: DOWN at 86.50 Pence from 86.52 PenceWest Texas Intermediate: DOWN 0.9 per cent at $66.85 per barrelBrent North Sea Crude: DOWN 0.9 per cent at $68.48 per barrelNew York - Dow: FLAT at 44,484.42 (close)
London - FTSE 100: DOWN 0.1 per cent at 8,774.69 (close)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Middle East Eye
an hour ago
- Middle East Eye
Trump cannot prevent migrants from seeking asylum at US border, judge says
A US federal judge on Wednesday ruled that President Donald Trump exceeded his authority when he signed an executive order in January that barred all migrants at the US-Mexico border. 'The president cannot adopt an alternative immigration system, which supplants the statutes that Congress has enacted," US district judge Randolph Moss said in a 128-page opinion. Trump, he added, does not possess "an extra-statutory, extra-regulatory regime for repatriating or removing individuals from the United States, without an opportunity to apply for asylum". The American Civil Liberties Union, as well as a litany of other immigrant rights groups, brought the case against the government, arguing that preventing asylum seekers from a chance at protection in the US violates congressional mandates as well as international treaties. "No president has the authority to unilaterally block people who come to our border seeking safety," Keren Zwick, director of litigation at the National Immigrant Justice Center, said in a press release shortly after the decision was announced. New MEE newsletter: Jerusalem Dispatch Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters "The courts have repeatedly sided with us on this issue, and we will continue to fight cruel policies, under any administration, that harm individuals and families who flee persecution," he added. Javier Hidalgo, legal director at the immigrant advocacy organisation Raices, said the judicial branch "is what stands between us and anarchy". "The Trump administration's prerogative is once again found to be unlawful. It is increasingly clear where the illegality lies, and it is not with the immigrant families upon whom this administration is inflicting unfathomable harm". The Trump administration has two weeks to appeal the decision. 'Invasion' Just hours after being sworn in on 20 January, Trump signed an executive order declaring a "national emergency" at the southern border and blocking migration north of Mexico. This was necessary, he said, because of the "invasion" of migrants from "cartels, criminal gangs, known terrorists, human traffickers, smugglers, unvetted military-age males from foreign adversaries, and illicit narcotics that harm Americans, including America". "America's sovereignty is under attack," the order said. Trump authorised the Pentagon to deploy "as many units or members of the Armed Forces, including the Ready Reserve and the National Guard, as the Secretary of Defense determines to be appropriate to support the activities of the Secretary of Homeland Security in obtaining complete operational control of the southern border". Additional funds were also allocated to construct physical barriers and deploy more surveillance drones along the border. That executive order was followed by another one halting all refugee admissions to the US and ending federal funding for refugee programmes to help with resettlement, transportation, and education. Trump has also moved to end birthright citizenship and is now prioritising a crackdown on naturalised immigrants who may have criminal or even civil violations dating back several years. Birthright citizenship is the legal right for people born in the US to acquire citizenship under the Fourteenth Amendment of the Constitution automatically. ProPublica, an investigative journalism outfit, has called the decisions to go after US citizens and lawful residents "unprecedented".
Middle East Eye
an hour ago
- Middle East Eye
At least 69 killed in Gaza on Thursday, including 39 waiting for aid
Gaza's civil defence agency has said that the number of people killed by Israeli forces on Thursday has risen to 69. Spokesperson Mahmud Bassal told AFP that 69 people were killed by Israeli strikes, artillery or gunfire across the enclave, including 38 people waiting for humanitarian aid.
Middle East Eye
2 hours ago
- Middle East Eye
Video of US contractors cheering after firing at Gaza civilians ignites fury online
A new Associated Press (AP) report detailing how American contractors guarding aid distribution sites used live ammunition, stun grenades and pepper spray against starving Palestinians seeking food has sparked fierce criticism online. Published on 2 July, the article is based on testimonies from two American contractors, videos, internal messages and forensic audio analysis. Both whistleblowers said they came forward due to what they described as 'dangerous and irresponsible practices' at sites run by the Gaza Humanitarian Foundation (GHF), the controversial US- and Israel-backed organisation operating in the besieged enclave. Online reaction to the report was swift, with hundreds of people slamming the private military contractors and the distribution hubs. 'US mercenary criminal-thugs… GHF and the gang are killing machines in 'humanitarian' clothing', wrote one X user. Another X user called the operation a 'sham' masking a 'ruthless agenda'. New MEE newsletter: Jerusalem Dispatch Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters A few people quoted the news agency's description of the audio from one video: 'At that moment, bursts of gunfire erupt close by, at least 15 shots. 'Whoo! Whoo!' one contractor yelps. 'I think you hit one', one says. Then comes a shout: 'Hell, yeah, boy!' While the clip does not show who was shooting, or where the shots were aimed, the contractor speaking to AP said their colleague was shooting in the direction of Palestinians at the aid point, and that they saw a man in that direction drop to the ground. At that moment, bursts of gunfire erupt close by, at least 15 shots. 'Whoo! Whoo!' one contractor yelps. 'I think you hit one,' one says. Then comes a shout: 'Hell, yeah, boy!' — Adil Haque (@AdHaque110) July 2, 2025 While some users praised the news agency for the report, others expressed frustration with its timing, which they same came too late. 'Yeah thanks AP, five weeks later and 600 people dead later #breakingnews', one user posted. Another said: 'Palestinians have been telling you this is happening for weeks... Maybe you should start believing the victims of genocide over the ones committing it.' 'When are you going to do something?' Middle East Eye has reported on Israeli forces targeting Palestinian aid seekers since the GHF began operations in late May. At least 600 Palestinians have been killed so far, and thousands more injured. Eyewitnesses have described the incidents as 'ambushes' carried out by the Israeli military. Israeli troops have admitted to deliberately firing on unarmed Palestinians at the food distribution points, following direct orders from their superiors, according to a Haaretz report published last week. A GHF subcontractor speaking to the AP denied that serious injuries had occurred at any of the aid sites. Video from Associated Press showing American contractors as they cheer after shooting Palestinians desperate for food. 'Hell yeah boy' — Bruno Maçães (@MacaesBruno) July 2, 2025 But many on social media dismissed official denials by the GHF and its partners, instead pointing to accounts from Palestinians. A video and photograph in the AP report shows at least one woman reportedly hit in the head with a stun grenade and another man in visible distress after being tear-gassed. Social media users also raised alarm over the reported lack of oversight and qualifications among armed contractors operating at the aid sites. 'Last minute and unqualified contractors, untested weapons, little to no supervision, no rule of engagement,' lamented one user. 'This is what you do when you have no value of lives you are engaging with.' Others called on politicians to take action. Are we really at the point where American contractors can open fire on starving people—and we just shrug? No condemnation. No investigation. Where's Congress? To the world, we're just another mercenary force now. Don't kid yourself—there was another way. — Adam N Weinstein (@AdamNoahWho) July 3, 2025 One user urged the leaders of the UK, Canada and France to respond to 'war crimes' by Israel, saying in 'the last last 20 months we've been absolutely inundated with many examples of them'. 'When are you going to act like leaders in the UN and do something?' they asked. Others called for the GHF to be shut down. 'GHF no longer has ANY credibility. It has denied firing on civilians time and time again but it has been show to be true. GHF have repeatedly lied,' posted one user on X. 'They need to be shut down and proper aid practices put back in place.'
