Asian Markets Tread Cautiously Ahead of US Jobs Data and Trade Deal Deadline

Asian equities showed muted movement on Thursday as investors weighed multiple factors including impending US trade negotiations, regional economic data releases, and anticipation of the critical US non-farm payrolls report. With the July 9 trade agreement deadline looming, Washington has only finalized pacts with the UK, China, and Vietnam so far.

Key developments:
- Japan's Nikkei 225 (NKY:IND) edged down 0.20% to 39,800, breaking a two-day losing streak amid trade optimism. The yen stabilized at 143.7/USD following earlier pressure.
- China's Shanghai Composite (SHCOMP) gained 0.17% after the US relaxed some chip design software export controls, while the offshore yuan held at 7.16/USD.
- Hong Kong's Hang Seng (HSI) fell 0.74% to 23,963 as mainland economic data disappointed.
- Australia's ASX 200 (AS51) dipped 0.03% from record highs after trade figures showed the surplus narrowing to a five-year low of AUD 2.24 billion.

Monetary policy outlook:
Bank of Japan board member Hajime Takata suggested the central bank should resume rate hikes after assessing US tariff impacts, signaling a potential shift from ultra-loose policies.

Market focus now turns to:
1) The US June jobs report and its implications for Fed rate policy
2) Final trade negotiations before the July 9 deadline
3) Ongoing economic data including PMI readings across the region