On Thursday morning (3 July, 9:36 AM, GMT+7, Bangkok time), indices in Asia Pacific exhibited a varied performance as market participants looked for further clarity on the trade pact President Donald Trump revealed with Vietnam on Wednesday.
The U.S. President announced via his social media “Truth” that the United States has reached a trade agreement with Vietnam following several months of negotiations. Under the new arrangement, a 20% tariff will be applied to a broad range of Vietnamese imports—a figure notably reduced from the initial 46% rate proposed by Trump in April. The original proposal targeted Vietnam due to the country’s considerable trade surplus with the United States.
Additionally, the agreement also includes provisions enhancing U.S. access to Vietnamese markets. Trump noted that American exports to Vietnam will no longer be subject to any tariffs, further opening up opportunities for U.S. businesses.
Meanwhile, neither the White House nor Vietnam’s trade ministry has issued an official response to requests for comment.
Japan’s NIKKEI climbed by 0.01% to 39,766.61. South Korea’s KOSPI rose by 0.59% to 3,093.11, while Australia’s ASX 200 dropped by 0.5% to 8,554.9.
As for stocks in China, Shanghai’s SSEC dipped by 0.19% to 3,448.28. Hong Kong’s HSI declined by 1.2% to 23,930.27, while Shenzhen’s SZI grew by 0.3% to 10,443.42.
The U.S. stock markets were mixed on Wednesday as NASDAQ added 0.94% to 20,393.13. S&P 500 gained 0.47% to 6,227.42, while the Dow Jones Industrial Average (DJIA) lost 0.02% to 44,484.42. VIX slumped by 1.13% to 16.64.
As for commodities, oil prices settled higher on Wednesday following Iran’s decision to halt collaboration with the United Nations’ nuclear watchdog and news of a trade pact between the U.S. and Vietnam. However, gains were tempered as data showed an unexpected increase in U.S. crude inventories. Brent futures surged $2.00 or 3% to $69.11 a barrel, and the West Texas Intermediate (WTI) expanded $2.00 or 3.1% to $67.45 per barrel.
Iran has passed legislation requiring that any future visits by International Atomic Energy Agency (IAEA) inspectors to its nuclear facilities obtain clearance from the nation’s Supreme National Security Council. Tehran has leveled accusations against the agency, claiming it is biased toward Western interests and alleging it has paved the way for Israeli airstrikes.
This morning, Brent futures fell 62 cents or 0.9% to $68.49 a barrel, and the WTI futures contracted 58 cents or 0.86% to $66.87 per barrel.
Meanwhile, gold futures slid by 0.06% to $3,357.8 per Troy ounce.
