Mixed Asian Results and Market Reaction
Japan’s Nikkei 225 added 0.1 percent to 39,785.90, while South Korea’s Kospi jumped 1.3 percent to 3,116.27. Taiwan’s TAIEX rose 1.3 percent, India’s Sensex gained 0.2 percent and Vietnam’s VNINDEX was up 0.4 percent. Australia’s S&P/ASX 200 added 0.1% to 8,589.80. Hong Kong’s Hang Seng Index lost 0.7 percent, to 24,056.77, and Shanghai’s Composite Index added 0.2 percent, to 3,460.15.
Markets also responded to a new trade deal signed, in which Vietnamese goods will be taxed at a 20% tariff on entry into the U.S. In exchange U.S. products sold in Vietnam will have no tariffs levied against them. That news sent stocks like Nike, which rose 4.1%, tumbling, since Vietnam factories made half its shoes in fiscal 2024. But worries persist about potential 40% tariffs on products believed to find their way to the U.S. through re-exports from Vietnam, enhancing the China risks.
U.S. Stocks Rise, Job Market and Tariff Fears Persist
Tesla jumped 5 percent after exceeding expectations on deliveries, even as the company reported that overall sales had sunk 13 percent from a year earlier. Constellation Brands added 4.5 percent, did not adjust its full-year outlook despite weaker quarterly earnings.
The S&P 500 was up 0.5 percent, to 6,227.42. The Nasdaq rose 0.9 percent to 20,393.13, and the Dow Jones slipped less than a 10th of a percent, to 44,484.42.
The job market is still uncertain in the lead-up to Thursday’s U.S. employment report. A report by ADP on Wednesday found that private employers shed 33,000 jobs, compared with expectations of 115,000 added. But the ADP numbers don’t always align with the government’s more detailed report.
Some analysts warn that the tariffs that President Donald Trump has imposed, as well as those he has threatened, could depress employment and drive up inflation if the White House is unable to negotiate deals with trading partners.
American crude oil, meanwhile, dropped 60 cents, to $66.85, and Brent crude fell 58 cents, to $68.53. The dollar climbed to 143.81 yen, from 143.65 yen, and the euro edged up to $1.1795.
