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CNBC
16 hours ago
- Business
- CNBC
CNBC Daily Open: U.S. markets say 'yes' to cheaper shoes from Vietnam, 'eh' to job losses
If I had to choose between having a job and paying less for Nike shoes, you'd see me running barefoot to the office. Wednesday's market moves, however, suggested that Wall Street preferred the cheaper shoes. The U.S. economy lost private sector jobs in June, the first time hiring had contracted since March 2023, according to payrolls processing firm ADP. It's even more startling because a Dow Jones survey of economists had pegged job numbers to expand by 100,000. Meanwhile, U.S. President Donald Trump announced on his social media site Truth Social that the country had made a trade deal with Vietnam, in which the Southeast Asian nation will face a 20% duty on imports to America. That means companies that rely heavily on Vietnam for manufacturing, such as Nike, Crocs and Lululemon, will face less onerous costs and might not hike prices as much, compared with the original tariff rate of 46%. After weighing both pieces of news, investors decided the good news was more important and lifted the S&P 500 to a new closing high. Granted, the ADP report has had a spotty track record in predicting the official job figures from the U.S. Bureau of Labor Statistics. But it's still worth thinking about how that's a sign financial markets could be slightly disconnected from the real economy: Who can afford to buy shoes and pump up stocks if they don't have jobs? Vietnam strikes a deal with America. Imports from the Southeast Asian nation to the U.S. will be subject to a 20% tariff, while the U.S. gets tariff-free access to Vietnam's market, Trump announced Wednesday. The S&P 500 rises to close at a fresh record. On Tuesday, the index also scored an intra-day high, while the Nasdaq Composite notched a record close. The Vietnam Index on Wednesday rose to its highest level since April 2022, following news of the country's deal with America. The White House lifts chip software curbs on China. Semiconductor software companies Synopsys and Cadence announced Thursday that they are restoring access to their products after the U.S. government reversed export restrictions. U.S. private sector jobs shrank in June. Job losses amounted to 33,000, reported ADP on Wednesday. Economists polled by Dow Jones had expected an increase of 100,000 jobs for the month. [PRO] Revenue-generating concerts are boosting K-pop stocks. Amid declining sales of music albums, K-pop agencies are pivoting their strategy — leading to a surge of over 100% in stock price for some. Hong Kong's IPO market is on fire — here's what's fueling the surge New listing volumes on the Hong Kong Stock Exchange jumped around eight times to $14 billion in the first half of this year, from just $1.8 billion in the same period in 2024, according to Dealogic. That puts the city on track to become the world's largest listing destination this year, surpassing the Nasdaq and the New York Stock Exchange. PwC projected up to 100 IPOs in Hong Kong this year, with total fundraising to exceed $25.5 billion.
CNBC
20 hours ago
- Business
- CNBC
Vietnamese stocks climb to highest in over three years after Trump announces U.S.-Vietnam trade deal
7 Mins Ago Vietnamese stocks climbed to its highest in over three years after U.S. President Donald Trump said a trade deal with Vietnam has been struck. The benchmark Vietnam Index rose 0.3% to its highest since April 2022, data from LSEG showed. —Lee Ying Shan An Hour Ago The Vietnamese dong weakened to a record low of 26,195 per dollar after its trade deal with the U.S., data from LSEG showed. While Vietnam striking a trade deal with the U.S. set off a rally in U.S. equities, the same enduring optimism among Asian markets and economies is not a given, said Vishnu Varathan, Mizuho Securities' head of macro research, Asia ex-Japan. "For one, the deal with Vietnam is a stark reminder of the imbalance in leverage, to the disadvantage of Asian exporters," he wrote in a Thursday note. However, the depreciation of the Vietnamese dong potentially provides a buffer for the 20% tariffs, he added. —Lee Ying Shan An Hour Ago Taiwanese stocks rose as much as 1.1% to the highest since March 6 in early Asia hours, data from LSEG showed. The index's gains were led by a mix of technology and consumer cyclicals stocks. Semiconductor packaging and testing company Powertech Industrial saw shares jump 10%, leading gains in the index, while Win Win Precision Industrial rose 7.2%. Nan Ya PCB Corporation, which manufactures circuit boards, climbed over 9%. Lai Yih Footware jumped 8.52%. —Lee Ying Shan 3 Hours Ago Asia-Pacific markets started the trading day mixed as of 8 a.m. Singapore time. Japan's benchmark Nikkei 225 slipped 0.15% and the Topix lost 0.21%. South Korea's Kospi added 0.77% and the small-cap Kosdaq rose 0.5%. Australia's S&P/ASX 200 added 0.13% at the open. —Lee Ying Shan 3 Hours Ago President Donald Trump said Wednesday that the United States has struck a trade deal with Vietnam that includes a 20% tariff on the Southeast Asian country's imports to the U.S. The deal will give the U.S. tariff-free access to Vietnam's markets, Trump said on Truth Social. Vietnam also agreed that goods would be hit with a 40% tariff rate, he added, if they originated in another country and were transferred to Vietnam for final shipment to the United States. The process, known as transshipping, is used to circumvent trade barriers. China, a top exporter to the U.S., has reportedly used Vietnam as a transshipment hub. Read the full story here. —Kevin Breuninger 3 Hours Ago Hello from Singapore! Asia-Pacific stock markets are looking at a lower open after mixed trading on Wednesday. Japan's benchmark Nikkei 225 was set to open marginally lower, with the futures contract in Osaka last trading at 39,740, against the index's last close of 39,762.48. Australia's S&P/ASX 200 is similarly set for a lower open, with futures tied to the benchmark at 8,587 compared to its last close of 8,597.7. Futures for Hong Kong's Hang Seng index stood at 24,174, lower than its last close of 24,221.41. We will also be on the lookout if Singapore equities can maintain their streak after notching a new high on Wednesday. — Lee Ying Shan 7 Hours Ago The S&P 500 and the Nasdaq Composite finished Wednesday's session in the green. The broad market index rose 0.47% to close at 6,227.42, while the tech-heavy Nasdaq jumped 0.94%, finishing at 20,393.13. The blue-chip Dow Jones Industrial Average, meanwhile, dropped 10.52 points, or 0.02%, to end the day at 44,484.42. — Sean Conlon
