Global markets cautious before US-N Korea summit

Published: June 12, 2018 12:20:44 | Updated: June 13, 2018 16:10:24

Global markets were mostly cautious before US-North Korea summit on Tuesday, but dollar jumped after US President Donald Trump said the summit 'really very positive'.

The dollar jumped to a three-week top and Asian shares rose as Trump said the summit had made “a lot of progress,” boosting hopes of a landmark deal to end a nuclear standoff on the Korean peninsula.

About the historic talks, Trump said, “A lot of progress- really very positive. I think better than anybody could have expected. Top of the line, very good. We’re going now for a signing,” reports Reuters.

Kim had earlier said the meeting was “a good prelude to peace”, just months after the two leaders traded insults and tensions spiralled in the region over the reclusive regime’s nuclear programmes.

The dollar rose against the safe-haven yen, while the Korean won gained 0.2 per cent to edge above a recent two-week trough. E-Minis ESc1 for the S&P 500 were barely changed.

In Asian equity markets, trading was volatile with Japan's Nikkei paring early gains to add 0.5 per cent after earlier rising as much as 0.9 per cent.

MSCI's broadest index of Asia-Pacific shares outside Japan seesawed between positive and negative territory, and was last up 0.2 per cent.

South Korean shares reversed losses to inched 0.1 per cent higher, while Chinese shares were buoyant after starting in the red with the blue-chip jumping 0.9 per cent.

The dollar was well bid on Tuesday, with the dollar index up 0.1 per cent against a basket of major currencies.

On the safe haven yen, the dollar jumped to a three-week top JPY= of 110.49 in early deals. It was last at 110.23.

The euro EUR= stepped back from a three-week high of $1.1840 to be last down 0.1 per cent at $1.1769.

In commodities, US crude CLc1 was rose 14 cents to $66.24 per barrel, while Brent LCOc1 dipped 5 cents to $76.51.

Spot gold slipped 0.2 per cent to $1,297.31 an ounce.

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