Asian markets show optimism: Stocks steady as US-Canada trade talks progress; eye on US jobs data due this week – OXBIG NEWS NETWORK-OxBig News Network

Asian equity markets showed strength on Monday, buoyed by optimism over US-Canada trade negotiations and sustained demand in the global technology sector. However, gains were tempered by concerns around upcoming US employment data, which weighed on the dollar. Japan’s Nikkei led the region with a 1.6 per cent gain, supported by strong performances in tech and export-oriented stocks. South Korea’s benchmark index also rose 0.8 per cent, following a positive lead from Wall Street. Chinese markets were mixed. The blue-chip CSI300 index edged up 0.2 per cent, helped by improved June data in manufacturing and services, while broader Asian sentiment remained cautious. The MSCI Asia-Pacific ex-Japan index dipped 0.2 per cent. The market gains came amid encouraging signals from North America, where Canada on Sunday agreed to drop its proposed digital services tax in a bid to move forward trade negotiations with the US. Talks, originally slated to wrap up by July 9 under President Donald Trump‘s directive, have now been extended to July 21, with a potential finalisation by Labor Day (September 1). This is a significant turning point as Trump had announced suspension of trade talkswith Canada just days ago.Read more: US-Canada trade talks resume as PM Carney revokes tax on US tech firms Tech stocks continued to drive momentum globally, with Nasdaq futures up 0.4 per cent and S&P 500 e-minis rising 0.3 per cent. Heavyweights such as Nvidia, Alphabet, and Amazon remained in focus. Still, investor attention remains fixed on key US macroeconomic data and fiscal policy developments. A Senate vote on major tax and spending legislation remains uncertain ahead of Trump’s July 4 deadline. The Congressional Budget Office’s projection of a $3.3 trillion increase in national debt is also dampening global appetite for US Treasuries. The US jobs report- due early this week due to Friday’s holiday- forecasts 110,000 new jobs in June, with unemployment possibly ticking up to 4.3 per cent. A weaker labour market could increase expectations of Federal Reserve rate cuts later this year, currently pricing in a cumulative 63 basis points reduction. The dollar slipped to 97.146 on the dollar index, with the euro climbing to $1.1727, its highest since September 2021. Sterling also hovered near multi-year highs at $1.3722. James Reilly of Capital Economics noted the greenback’s recent slide marked its sharpest sustained decline since the move to free-floating exchange rates in 1973. Meanwhile, gold traded at $3,279 an ounce- below its April peak- and oil prices continued to drop, with Brent crude at $67.50 and US crude at $65.09 amid ongoing concerns over OPEC+ supply levels.