Stocks start week steady after strong quarter, U.S. policies in focus

Asian shares started the week on a steady footing on Monday after a bumper quarter as investors look to the shape of U.S. trade and economic policies and how they could affect global growth.
  • VN Index narrows gains, steel stocks stay positive
  • Asia stocks weaker, dollar slips as Fed continues to weigh
  • Asia stocks set for best week since July, dollar dips further after Fed

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was little changed in early trade while Japan's Nikkei .N225 rose 0.1 percent.

Ex-Japan Asia MSCI had gained 12.3 percent in the last quarter, its biggest quarterly gains in 6-1/2 years and almost double the 6.4 percent rise in MSCI's broadest gauge of the world's stock markets .MIWD00000PUS covering 46 markets.

Photo: Reuters
Photo: Reuters 

The rally was primarily underpinned by signs of a pickup in momentum in the global economy, led by China.

South Korea's trade data for March released over the weekend added to the evidence of an improving global demand outlook, with the country's exports rising more than expected.

While a private survey on China's manufacturing on Saturday came in below market expectations it still showed a healthy expansion after a similar survey by the government on Friday pointed to strong growth in the sector.

The main focus for markets this week centers on U.S. payrolls figures due on Friday.

"If we get strong reading in U.S payrolls data, the markets will try to price in a rate hike in June," said Minori Uchida, chief currency strategist at the Bank of Tokyo-Mitsubishi UFJ.

On the other hand, investors are on guard against the possibility the U.S. administration may adopt protectionist measures.

President Donald Trump sought to push his crusade for fair trade and more manufacturing jobs back to the top of his agenda on Friday by ordering a study into the causes of U.S. trade deficits and a clampdown on import duty evasion.

The executive orders came a week after Trump's promise to replace Obamacare imploded in Congress and a week before he meets with Chinese President Xi Jinping in Florida, a summit that promises to be fraught with trade tensions.

"After his failure to push through his healthcare reforms, investors increasingly think that his tax reforms will take time. And given the China-U.S. summit, trade issues could come to the fore this week," said Masahiro Ichikawa, senior strategist at Mitsui Sumitomo Asset Management.

Any hints that Washington may name some of its trade partners such as China, Japan and Germany, as currency manipulator could dent the dollar.

"The Trump administration is not necessarily seeking to reduce trade deficit through a cheaper dollar. But it has strong intentions to do that and it could use a weaker dollar as a bargaining tool in trade negotiation," said Uchida of the Bank of Tokyo-Mitsubishi UFJ.

In early trade, the dollar slipped 0.2 percent to 111.20 yen JPY=. Uchida said it could fall below its four-month low of 110.10 yen touched last Monday.

The euro EUR= ticked up 0.2 percent to $1.0673, rebounding from Friday's two-week low of $1.0651 hit after data had shown inflation in the currency bloc had slowed by far more than expected in March.

Oil prices stood near three-week highs on a growing sense that OPEC and nonmember Russia would extend their production cut, seeking to drive the market higher.

Brent crude futures LCOc1 hit a three-week high of $53.63 per barrel early on Monday and last stood at $53.43, down 0.2 percent from U.S. close.

Reuters

Other News

A view of a container port in Singapore. (File photo: Xinhua/VNA)

Vietnam-Singapore trade cooperation gains fresh momentum

Analysts noted that Vietnam-Singapore ties are increasingly moving beyond traditional goods trade towards green growth, innovation and high-quality supply chains, laying a stronger foundation for more substantive and sustainable cooperation in the years ahead.

Vietnamese products make strong impression at Foodservice Australia 2026

Vietnamese products make strong impression at Foodservice Australia 2026

International visitors expressed positive impressions of Vietnamese products displayed at the fair. Nelma Sanjines, senior supervisor at ESP Catering in Sydney, praised the flavour of Vietnamese chilli sauce and soy sauce as well as the attractive packaging of confectionery products.

Digital technology helps standardise supply chains, sustain export competitiveness

Digital technology helps standardise supply chains, sustain export competitiveness

Experts noted that supply chain optimisation and risk management are no longer isolated tasks for individual companies but a requirement for the entire export ecosystem. With guidance from regulators, support from industry experts and their own efforts, Vietnamese exporters are expected to enhance their competitiveness and turn technical barriers and market volatility into opportunities for sustainable growth in global markets.

Vietnam seen as attractive investment destination for 2026–2035

Vietnam seen as attractive investment destination for 2026–2035

The article described Vietnam as strategically positioned along major regional maritime routes, including the East – West corridor linking the Americas, the Middle East, India and Europe, and the North – South corridor connecting China and Southeast Asia, helping make the country a gateway for international trade.

Eco-industrial parks seen as catalyst for higher-quality FDI

Eco-industrial parks seen as catalyst for higher-quality FDI

The eco-industrial park model will help Vietnam meet international environmental standards while creating opportunities to improve growth quality and economic competitiveness. Many multinational corporations now view green standards, emissions reduction and energy efficiency as key conditions when selecting investment destinations.

Promoting Vietnamese Brands at an International Food Fair in Gwangju

Promoting Vietnamese Brands at an International Food Fair in Gwangju

Alongside exhibition activities, trade promotion, and business networking programs, the “Gwangju Global Food Fair 2026” also witnessed the signing ceremony of a Memorandum of Understanding (MOU) between the Vietnam–Korea Businessmen & Investment Association (VKBIA) and the Gwangju Tourism Organization of South Korea.

Hanoi proposes subsidies to accelerate shift to electric vehicles

Hanoi proposes subsidies to accelerate shift to electric vehicles

Under a draft resolution currently open for public feedback by the municipal People’s Committee, residents with permanent or temporary residence registration in Hanoi for at least two consecutive years, who own petrol-powered motorbikes registered before the resolution takes effect, will be eligible for support when purchasing electric motorbikes priced at 10 million VND or more.

Private economic sector poised for breakthrough growth

Private economic sector poised for breakthrough growth

More than a year after the Politburo's Resolution No. 68-NQ/TW on private sector development came into effect, expectations now extend beyond increasing the number of enterprises. The goal is to build a stronger business community with greater resilience, larger ambitions and the capacity to compete in global supply chains.

Vietnam remains ASEAN growth leader in 2026 despite global headwinds: WB

Vietnam remains ASEAN growth leader in 2026 despite global headwinds: WB

Vietnam is expected to remain one of ASEAN’s fastest-growing economies in 2026, supported by resilient exports, strong investment inflows and an ambitious reform agenda, despite mounting global uncertainties, according to the World Bank’s latest Vietnam Economic Update released on May 15.

Ministry establishes monitoring framework for carbon market

Ministry establishes monitoring framework for carbon market

Under a new circular, the exchange of greenhouse gas emission quotas and carbon credits is conducted on the domestic carbon credit exchange through the carbon trading system, which is interconnected with the national registration system.