Stocks Mixed, Yen Down as History Made on Korea: Markets Wrap - Ester Holdings

Stocks Mixed, Yen Down as History Made on Korea: Markets Wrap

Bloomberg.com — Stocks in Asia meandered and the yen weakened as investors await the details of a “comprehensive” and historic document signed by U.S. President Donald Trump and North Korean dictator Kim Jong Un.

With prospects for continued dialog between the two leaders diminishing geopolitical risks, the safe-haven yen offered the biggest reaction in an otherwise muted response by investors to the summit. Equities from Tokyo to Sydney swung between gains and losses. U.S. Treasury yields steadied. S&P 500 Index and FTSE 100 futures barely budged. The pound extended a decline as Theresa May’s landmark Brexit legislation goes to Parliament. Oil recovered as cracks in a pipeline threatened Nigerian exports.

Trump hailed the document signed with Kim as “very important,” while the North Korean leader added that e “world would see a major change” following the unprecedented event. He said he would “absolutely” invite Kim to the White House. Trump is expected to deliver a press briefing later in the day Tuesday.

Traders will soon switch focus to the Federal Reserve, which is expected to raise interest rates Wednesday, while European Central Bank officials later in the week are poised to hold formal talks on ending its bond-buying program. The Bank of Japan meets Friday, with no change to policy expected.

“Despite the historic event, the markets haven’t moved much because they’ve already discounted the risk of military conflict,” Goohoon Kwon, co-head of Korea research and senior Asia economist at Goldman Sachs Group Inc. told Bloomberg Television before the document signing. What’s more important going forward is the “follow through, execution, implementation” of any agreements, he said.

Meanwhile, Trump’s top economic adviser, Larry Kudlow, was “doing well” on Monday night after suffering a heart attack, a White House spokeswoman said.

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