Asian markets mostly up despite G7 woes, eyes on Trump-Kim summit
The G7 summit ended in chaos at the weekend after Donald Trump withdrew his endorsement of a communique, accusing Canadian Prime Minister Justin Trudeau of dishonesty. (Photo: AFP/Leon Neal)
HONG KONG: Asian markets mostly rose Monday as traders brushed off the chaotic Group of Seven meeting, with investors looking ahead to Donald Trump's summit with North Korean leader Kim Jong Un and key central bank decisions.Trump pulled out of endorsing a joint communique after the G7 meet finished on Saturday in a row over trade, accusing the summit's chairman, Canadian Prime Minister Justin Trudeau, of dishonesty.
The shock decision followed a testy gathering in Quebec, where the US president came under fire for his "America First" protectionist drive that has fuelled fears of a global trade war.He had left early for Singapore, only to take exception to comments by Trudeau at a news conference."One thing that we do know for sure is the president's uncontrollable need to defend his status is more apparent than any strategy when (it) comes to bilateral trade negotiations," said Stephen Innes, head of Asia-Pacific trade at OANDA."But the far from harmonious Quebec summit confirmed deep-seated... expanding policy fissures on a plethora of significant concerns including climate change, the Iran nuclear deal and, of course, trade," he added.
"While expectations were not exactly high going into the meeting, the result was a bit worse than even the markets' dismal presuppositions."FED, ECB IN FOCUSDespite the weekend's problematic meeting, Tokyo ended 0.5 per cent up, Hong Kong added 0.3 per cent and Seoul gained 0.8 per cent.Singapore, Wellington and Manila also rose, while Taipei was flat. Shanghai, however, ended 0.5 per cent down.
Sydney was closed for a public holiday.All eyes are now on Singapore, with the leaders of North Korea and the United States due to meet for the first time in history, with Pyongyang's nuclear programme top of the agenda.Tai Hui, JP Morgan Asset Management chief market strategist for Asia-Pacific, said in a note: "Although the ... summit in Singapore is capturing public attention, the direct impact on markets is likely to be limited.""Ongoing dialogue between Washington and Pyongyang is positive, since this implies military action is on hold, limiting any economic implication for South Korea and surrounding region. Investors will hope to see steady progress with opportunities for more discussion in coming months."This week is also expected to see the Federal Reserve lift interest rates again, and traders will be poring over its post-meeting statement for an idea about future moves.That will be followed by the European Central Bank's latest gathering, which could see policymakers discuss winding down its crisis-era stimulus programme.In early European trade, London was up 0.5 per cent while Frankfurt added 0.6 per cent.- Key figures around 0820 GMT -Tokyo - Nikkei 225: UP 0.5 per cent at 22,804.04 (close)Hong Kong - Hang Seng: UP 0.3 per cent at 31,063.70 (close)Shanghai - Composite: DOWN 0.5 per cent at 3,052.78 (close)London - FTSE 100: UP 0.5 per cent at 7,715.28Euro/dollar: UP at US$1.1808 from US$1.1800 at 2100 GMT on FridayPound/dollar: UP at US$1.3425 from US$1.3400Dollar/yen: UP at ¥109.99 from ¥109.47Oil - West Texas Intermediate: DOWN 21 cents US$65.53 per barrelOil - Brent Crude: DOWN 24 cents at US$76.22 per barrelNew York - Dow Jones: UP 0.3 per cent at 25,316.53 (close)
Source : http://www.channelnewsasia.com/news/business/asian-markets-mostly-up-despite-g7-woes-eyes-on-trump-kim-summit-10418768