Asian markets mostly up despite G7 woes | 2018-06-12 |

Asian markets mostly up despite G7 woes

    11th June, 2018 09:54:53 printer

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, reports AFP.

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.”

Despite the weekend’s problematic meeting, Tokyo ended 0.5 percent up, Hong Kong added 0.5 percent and Seoul gained 0.8 percent.

Singapore, Wellington and Manila also rose, while Taipei was flat. Shanghai, however, ended 0.5 percent 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.”