Stocks Mixed, Dollar Up as Korea Summit Underway: Markets Wrap
Asian stocks traded mixed and the dollar rose as investors looked beyond weekend trade ructions to focus on the three major central bank meetings this week and the outcome of Tuesdays historic summit between President Donald Trump and North Koreas leader.
Equities from Tokyo to Sydney swung between gains and losses, struggling to establish any clear direction, as the meeting between Trump and Kim Jong Un got underway in Singapore. The yen trimmed losses as the greenback strengthened against its Group-of-10 peers and U.S. Treasury yields steadied. Earlier, the S&P 500 Index edged higher, though it gave up some gains just before the close. The pound extended a decline as Theresa Mays landmark Brexit legislation goes to Parliament. Oil recovered as cracks in a pipeline threatened Nigerian exports.
Investors are steeling themselves for geopolitical noise as the week picks up with Trump and Kim expressing optimism that the U.S. and North Korea can find a path toward peace. After the summit ends, traders will switch their focus to the views of the worlds biggest central banks. The Federal Reserve is expected to raise interest rates, while European Central Bank officials are poised to hold formal talks on ending its bond-buying program. The Bank of Japan meets Friday, with no change to policy expected.
From investors point of view, we dont have huge expectations for this meeting because its very difficult to predict what will happen, Goohoon Kwon, co-head of Korea research and senior Asia economist at Goldman Sachs Group Inc. told Bloomberg Television. Despite the historic event, the markets havent moved much because theyve already discounted the risk of military conflict. Going forward, there could be some upside, but nonetheless thats subject to the outcome of this summit, which is quite unpredictable, but also more importantly, follow through, execution, implementation.
Meanwhile, Trumps top economic adviser, Larry Kudlow, was doing well on Monday night after suffering a heart attack, a White House spokeswoman said.
These are some key events to watch this week:
President Donald Trump and North Korean leader Kim Jong Uns meeting in Singapore Tuesday, which will be late Monday in New York, marks the first face-to-face encounter between a sitting U.S. president and a leader of North Korea U.K. Prime Minister Theresa May faces votes that could derail her Brexit policy, also Tuesday The Federal Reserve is expected to raise interest rates Wednesday as the U.S. economy remains solid The European Central Bank rates decision comes Thursday with a briefing from President Mario Draghi The Bank of Japan June monetary policy decision and news conference is Friday FIFA expects more than 3 billion viewers for the World Cup that begins this week in Russia.
And these are the main moves in markets: Stocks
Topix index rose 0.3 percent as of 12:54 p.m. in Tokyo. Kospi index fell 0.2 percent. Hang Seng Index rose 0.2 percent. Australias S&P/ASX 200 Index added 0.2 percent. Futures on the S&P 500 Index were flat. The MSCI Asia Pacific Index was little changed.
The Bloomberg Dollar Spot Index rose 0.1 percent. The Japanese yen fell 0.2 percent to 110.29 per dollar. The euro fell 0.2 percent to $1.1765. The pound fell 0.1 percent to $1.3361.
The yield on 10-year Treasuries was steady at 2.95 percent. Australias 10-year yield rose two basis points to 2.80 percent.
West Texas Intermediate crude rose 0.1 percent to $66.16 a barrel. Gold declined 0.2 percent to $1,297.53 an ounce. LME copper fell 0.5 percent to $7,220.50 per metric ton.Rašyti komentarą