Asian Markets Mixed as Await for more Trump Trade Deals

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•  04 Jul 2025
 

Asian stock markets showed mixed trends today as investors closely watch for Trump trade deal updates amid rising concerns over the massive US budget approval. The Asia markets are cautious ahead of the next tariff deadlines while only a Vietnam trade deal has been signed so far, lowering tariffs on Vietnamese goods to 20% while trans-shipment goods face a 40% tariff.

In Japan, household spending surged 4.7% in May, the highest since August 2022, which could influence Bank of Japan interest rate decisions. Meanwhile, the ASX 200 rose slightly, the Nikkei gained modestly, and Shanghai’s index jumped 0.76%, while Hang Seng dropped 0.29%.

In Vietnam, the dong weakened to a new low of 26,200 per USD, while the local stock market remained flat after heavy declines.

In Washington, Trump’s “One Big Beautiful Bill” budget passed narrowly, adding an estimated $3.3 trillion to the US deficit over the next decade, sparking debate over its impact on US trade partners and global markets. The budget includes significant tax cuts, social safety net reductions, and increased defense spending, creating uncertainty for Asian markets.

Alibaba (BABA) is also in focus after announcing a $1.53 billion convertible bond issuance to fund its cloud and commerce expansion, following recent data center launches in the Philippines and Malaysia and a $6.4 billion subsidy plan.

Meanwhile, Wall Street closed at record highs ahead of Independence Day, driven by a strong jobs report showing 147,000 new jobs versus 115,000 expected, keeping US unemployment at 4.1%. While this signals economic strength, it also dampens hopes for a near-term Fed rate cut.