Asian Markets Edge Higher Ahead of Key US Jobs Report; Trade Optimism Boosts Vietnam

Asian equities posted modest gains on Thursday as investors cautiously awaited Friday's pivotal US employment data and congressional deliberation on a $3.3 trillion fiscal package. Regional markets showed divergent movements, with Vietnam's benchmark index surging to three-year highs following President Trump's announcement of reciprocal tariff elimination in a new US-Vietnam trade agreement.

The MSCI Asia ex-Japan index rose 0.2%, approaching its highest level in nearly four years, while China's CSI 300 gained 0.2% despite slower services sector growth. European futures indicated a positive opening, with the FTSE 100 and DAX both projected to rise 0.2-0.3%, as US Treasury yields edged lower and the dollar weakened to a three-year low against major currencies.

Market participants remain focused on Friday's non-farm payrolls report, which analysts suggest could show unemployment rising to 4.4% - potentially increasing odds of a July Fed rate cut. 'These labor indicators suggest growing economic headwinds,' noted IG analyst Tony Sycamore, though futures currently price just a 25% probability of immediate policy easing.

In commodities, oil prices retreated slightly after Wednesday's 3% surge triggered by Iran's suspended cooperation with UN nuclear inspectors, with Brent crude settling at $68.84 per barrel. The cryptocurrency sector continues attracting investor attention, with educational platforms like Cryptopolitan Academy promoting decentralized finance strategies for 2025 portfolio growth.