JOHANNESBURG, July 3 (Reuters) - The South African rand

gained on Thursday on optimism among global investors about

trade negotiations with the U.S. after the country signed a

trade deal with Vietnam, fuelling hopes of more such deals ahead

of a July 9 deadline set by Washington.

At 1556 GMT the rand traded at 17.4950 against the U.S.

dollar, up roughly 0.5% on Wednesday's close and at its

best level so far this year.

The dollar last traded about 0.4% firmer against

a basket of currencies after the world's largest economy

reported

stronger-than-expected

jobs data and as investors awaited more news on trade

negotiations.

Many countries including South Africa will be scrambling

to agree trade deals with the United States before President

Donald Trump's deadline next week.

Trump imposed a 31% tax on U.S. imports from South

Africa in April as part of his global "reciprocal"

tariff

regime.

Domestic investor attention earlier was on a purchasing

managers' index that showed South African private sector

activity

held steady in June

, though business confidence slipped to its lowest level in

nearly four years.

The Johannesburg Stock Exchange's Top-40 index

closed up 0.2%.

South Africa's benchmark 2035 government bond was

slightly weaker, with the yield rising 1 basis point to 9.745%.