(Bloomberg) — Asian shares were poised for a cautious open as investors awaited US jobs data after stocks hit another record following Donald Trump’s announcement of a trade deal with Vietnam.
An MSCI gauge of global shares set a new peak after the S&P 500 rose 0.5% to a new high Wednesday. The Nasdaq 100 gained 0.7% as tech outperformed. News of a trade deal supported apparel stocks including Nike Inc. amid hopes the latest accord will avert a potential supply-chain catastrophe. Asian equity-index futures were little changed. Tesla Inc. jumped 5% as a drop in sales was seen as better than feared.
Treasuries fell Wednesday following heavy selling in the UK, where concerns about Chancellor of the Exchequer Rachel Reeves’ future reignited questions over the nation’s fiscal position. The US 10-year yield climbed four basis points while the UK 10-year yield soared 16 basis points Wednesday. Gold rose, oil climbed around 3% and the dollar was little changed.
The cross-asset moves underscored cautious optimism as traders contend with pockets of uncertainty ahead of US jobs data that will help identify the path ahead for interest rates. Like in the UK, investors have also raised similar concerns in the US, where Trump’s signature economic legislation stalled in the House Wednesday afternoon as Republican fiscal conservatives delayed a key procedural vote.
“Investors are already pricing in the One Big Beautiful Bill, at least in some form,” Zachary Griffiths, head of investment-grade and macroeconomic strategy at CreditSights, told Bloomberg Television Wednesday. “We’re going to see more supply from the US and there’s concerns fiscally across the globe” including in the UK.
On the Vietnam trade deal, Trump said he reached a deal with the country after weeks of negotiations. A 20% tariff will be placed on Vietnamese exports to the US, with a 40% levy on any goods deemed to be transshipped through the country. Trump said that Vietnam had agreed to drop all levies on US imports.
Markets Live Strategist Mary Nicola says:
The deal also includes a 40% duty on transshipped goods, a clause clearly aimed at Chinese exports. Details on enforcement remain scarce, but this heightens risks of a potential response from Beijing.
Meanwhile, UK Prime Minister Keir Starmer said Rachel Reeves will stay on as Chancellor of the Exchequer, as he sought to draw a line under speculation about her future that sparked the bond selloff.
Back in the US, monthly nonfarm payroll data due later Thursday — a day earlier than usual due to a holiday — will show slower hiring and the highest unemployment rate since 2021 as the Trump administration’s trade and immigration policy shifts start to leave an imprint.
Separate private payrolls data from ADP Research on Wednesday showed employment at US companies fell for the first time in over two years. Despite signs of a downshift, Federal Reserve Chair Jerome Powell has repeated the labor market remains solid. Policymakers have refrained from lowering interest rates this year as they wait to see the impact of tariffs on inflation.
“One of the reasons the Fed has been able to be patient before cutting rates was because the job market was holding up so well, so if that were to change, then the Fed may be forced to move earlier than they would like,” said Chris Zaccarelli at Northlight Asset Management.
Following ADP Research’s private payrolls data, traders added to wagers on at least two rate reductions this year, with the first coming in September. If the upcoming jobs report shows further weakness, traders reckon the Fed could move up cuts.
Some of the main moves in markets:
Stocks
- S&P 500 futures were little changed as of 8:22 a.m. Tokyo time
- Hang Seng futures were little changed
- S&P/ASX 200 futures fell 0.1%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.1800
- The Japanese yen was little changed at 143.56 per dollar
- The offshore yuan was little changed at 7.1620 per dollar
- The Australian dollar was little changed at $0.6585
Cryptocurrencies
- Bitcoin fell 0.1% to $109,061.54
- Ether fell 0.2% to $2,586.18
Bonds
- Australia’s 10-year yield advanced three basis points to 4.18%
Commodities
- West Texas Intermediate crude fell 0.3% to $67.25 a barrel
- Spot gold fell 0.1% to $3,352.62 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Richard Henderson.
©2025 Bloomberg L.P.