Stocks on edge, dollar rises as Trump, Kim raise hopes at landmark summit
The dollar jumped to a 3-week top on Tuesday while stock markets in Asia ticked higher as a landmark U.S.-North Korea summit in Singapore raised hopes the bitter foes might be able to strike a deal to end a nuclear stand-off on the Korean peninsula.
U.S. President Donald Trump said he had forged a “good relationship” with North Korean leader Kim Jong Un at the start of their historic meeting, just months after they traded insults and tensions spiraled in the region over the reclusive regime’s nuclear programs.
Kim said the meeting was “a good prelude to peace”, but there was some unease among investors about the outcome of the talks given the tense relations between the two nations.
The combatants of the 1950-53 Korean War are technically still at war, as the conflict, in which millions of people died, was concluded only with a truce.
The dollar rose against the safe-haven yen, while the Korean won <krw=>gained 0.2 percent to edge above a recent two-week trough. U.S. stock futures were barely changed with E-Minis for the S&P 500 (ESc1) up 0.02 percent and Dow futures inching 0.06 percent higher.</krw=>
However, “markets are generally shrugging off the G7 trainwreck,” said Ray Attrill, head of forex strategy at National Australia Bank.
Instead, they are looking ahead to a busy week.
Tuesday’s North Korea summit will be followed by policy meetings of the U.S. Federal Reserve, which is expected to raise rates, and the European Central Bank as well as a Brexit bill vote in the British parliament.
On the safe haven yen, the dollar jumped to a three-week top <jpy=>of 110.49 in early deals. It was last at 110.28.</jpy=>
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