Yen Falls, U.S. Stock Futures Rise on North Korea: Markets Wrap

Bloomberg.com — The yen dropped and U.S. stock futures rose after North Korea offered a measured response to President Donald Trump’s decision to cancel a summit with that country’s leader. Asian shares were mixed, and crude oil held losses.

Shares in Japan, Hong Kong and South Korea saw modest declines and were heading for weekly losses as trade tensions simmer and investors eye risks from emerging markets. Crude oil held losses after Russia’s energy minister reiterated that OPEC and its partners will discuss phasing out supply curbs when they meet next month. Turkey’s lira resumed its slump as traders weighed whether an emergency rate hike was enough to stem losses.

Geopolitics was back on the agenda with President Donald Trump’s letter to the North Korean leader Kim Jong Un, in which he blamed the “tremendous anger and open hostility” in recent statements from Pyongyang for his decision. North Korea’s government said in a statement that it was surprised at the cancellation and remained willing to meet with the U.S. at any time.

Elsewhere, the euro remained weaker, alongside the pound, as questions swirl around the Italian populist government’s economic policies and Brexit negotiations loom large over British assets.