Attention was also on Washington as Republicans struggled to push Donald Trump's tax-slashing budget bill through the House of Representatives amid warnings it will inflate an already ballooning national debt.

While the Vietnam pact provided hope that other governments can reach agreements with Washington, dealers were cautious as it emerged that the country must still pay tolls of as much as 40 percent for certain exports.

With less than a week left until the US president's July 9 deadline to avoid his "reciprocal" levies, only Britain has signed a deal with the United States while China has agreed a framework that slashed sky-high tit-for-tat levies.

That has stoked worries his "Liberation Day" measures will kick in and spark fresh market turmoil.

In a post on his Truth Social platform, Trump wrote: "It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam."

He said that under the "Great Deal of Cooperation", imports of Vietnamese goods will face a 20 percent US tariff, while goods that pass through Vietnam to circumvent steeper trade barriers -- so-called "transshipping" -- will see a 40 percent tariff.

The news means Hanoi will avoid paying the 46 percent tolls initially applied on the April 2 tariff blitz, though the cost of goods going into America will still surge.

Shares rose in Vietnam, with the Ho Chi Minh exchange at its highest since April 2022 and Hanoi also edging up.

A third record close in four days for Wall Street's S&P 500 and Nasdaq also did little to lift buying sentiment elsewhere in Asia, with Hong Kong, Sydney, Singapore and Wellington falling.

Tokyo, Shanghai, Seoul, Taipei, Manila, Mumbai, Bangkok and Jakarta edged up.

Firms that make goods in Vietnam to ship to the United States enjoyed gains, with Seoul-listed packaged food giant Daesang in the green along with the Hong Kong shares of Nike supplier Yue Yuen. Glover-maker Ansell also edged up in Sydney.

London, Paris and Frankfurt rose at the open.

Trump said this week he will not push back his deadline to make more deals though he and some of his officials have said a number were in the pipeline.

South Korean President Lee Jae Myung said Thursday his administration was doing its "utmost" to secure an agreement.

However, he warned that "it's certainly not easy, that much is clear. And to be honest, I can't say with confidence that we'll be able to wrap everything up" by the deadline.

The dollar continued to struggle as traders boosted rate cut bets after data showed the private sector unexpectedly shed jobs last month for the first time since March 2023, suggesting the labour market was slackening.

The reading came a day before the much-anticipated non-farm payrolls report that is used by the Fed to guide policy.

Traders widely expect the bank to cut rates twice this year but there is growing speculation that it could make three, with one possibly at the July meeting.

"Payrolls is the focus (Thursday), where consensus is for a 110,000 payrolls gain and a slight lift in the unemployment rate to 4.3 percent," said National Australia Bank's Taylor Nugent.

"It would take more than that to dent (policy board) members' comfort (that) the labour market is resilient enough to wait beyond July for more clarity on inflation and the outlook."

Meanwhile, US Treasury yields rose amid fresh worries in the bond market over Trump's "Big, Beautiful Bill" that cuts taxes as well as spending on programmes such as Medicaid.

Independent analysis suggests it will add $3 trillion to the already-colossal US debt mountain, which observers warn could deal a fresh blow to the world's top economy.

- Key figures at around 0715 GMT -

Tokyo - Nikkei 225: UP 0.1 percent at 39,785.90 (close)

Hong Kong - Hang Seng Index: DOWN 0.7 percent at 24,055.86

Shanghai - Composite: UP 0.2 percent at 3,461.15 (close)

London - FTSE 100: UP 0.4 percent at 8,811.86

Euro/dollar: DOWN at $1.1796 from $1.1801 on Wednesday

Pound/dollar: UP at $1.3640 from $1.3634

Dollar/yen: UP at 143.85 yen from 143.65 yen

Euro/pound: DOWN at 86.50 pence from 86.52 pence

West Texas Intermediate: DOWN 0.7 percent at $67.00 per barrel

Brent North Sea Crude: DOWN 0.7 percent at $68.65 per barrel

New York - Dow: FLAT at 44,484.42 (close)

dan/mtp

S&P Global Ratings

NATIONAL AUSTRALIA BANK