Asia-Pacific markets show varied performance as investors evaluate U.S.-Vietnam trade agreement
Vietnamese dong weakens and records a low record against the dollar
The Vietnamese dong has fallen to a historic low of 26,195 per dollar, as reported by LSEG data following a trade agreement with the US.
Despite the agreement propelling US stocks, this optimistic sentiment hasn’t translated to Asian markets or the overall economy, according to Vishnu Balasan, head of macro research at Mizuho Securities in Japan.
He noted that the deal serves as a stark reminder of leverage imbalances that disadvantage Asian exporters in this context. However, he mentioned that the depreciation of the Vietnamese dong could potentially create a 20% buffer against tariffs.
Taiwanese stocks jump the best since March
Stocks in Taiwan have reached their highest point since March 6, with index gains driven by the technology sector and consumer cyclical inventories, according to LSEG data.
Companies like Powertech Industrial saw a stock increase of 10%, contributing significantly to index profits, while Win Win Precision Industrial experienced a rise of 7.2%. Nan Ya PCB Corporation, a manufacturer of circuit boards, climbed over 9% as well.
Additionally, lai yih footwear jumped 8.52%.
Asian market mixes Thursday trading
The Asia-Pacific markets saw mixed trading as of 8 a.m. Singapore time.
The Japanese Nikkei 225 index slid 0.15%, while the Topix lost 0.21%. Conversely, Korea’s Kospi increased by 0.77%, and the Kosdaq climbed 0.5%.
Australia’s S&P/ASX 200 index opened slightly higher, gaining 0.13%.
Trump says we attacked a trade contract with Vietnam, which imposes a 20% tariff on imports
On Wednesday, President Donald Trump announced that the US had engaged in a trade deal with Vietnam.
This deal grants US companies access to the Vietnamese market tariff-free, he stated, and mentioned that Vietnam has agreed to a 40% tariff rate if goods are processed in another country before being shipped to the US.
This practice, known as transshipping, is often used to navigate trade barriers. There are reports suggesting that Vietnam is being utilized as a transport hub for goods primarily coming from China, the leading exporter to the US.
Greetings from Singapore! The Asia-Pacific stock market is anticipated to open lower after a mixed trading session on Wednesday.
The Japanese Nikkei 225 futures are expected to open slightly lower, down from the last closing of 39,740 to around 39,762.48.
Similarly, Australia’s S&P/ASX 200 is set to open lower, with futures indicating a drop from the previous closing of 8,597.7 to 8,587.
The Hong Kong Hang Seng Index futures are also down compared to the last closing of 24,221.41.
We’ll also be monitoring how Singapore’s stocks perform, especially after hitting a new high on Wednesday.
