Tokyo — Asian shares were mostly higher Tuesday but Europe opened mixed as market players tried to digest the summit between President Donald Trump and North Korean leader Kim Jong Un in Singapore, AP reports.
KEEPING SCORE: France’s CAC 40 was little changed but inched down to 5,472.42 in early trading, while Germany’s DAX was up 0.1 percent to 12,861.27. Britain’s FTSE 100 lost 0.2 percent 7,720.96. U.S. shares were set to drift higher with Dow futures gaining 0.1 percent to 25,366. S&P 500 futures rose nearly 0.1 percent to 2,789.
ASIA’S DAY: Japan’s benchmark Nikkei 225 was up 0.3 percent to finish at 22,878.35. Australia’s S&P/ASX 200 was up 0.2 percent at 6,054.40. South Korea’s Kospi fell less than 0.1 percent to 2,468.83 after fluctuating earlier in the day. Hong Kong’s Hang Seng’s rose 0.1 percent to 31,103.06, while the Shanghai Composite index added 0.9 percent to 3,079.80.
SUMMIT WATCH: Trump and Kim concluded their summit by signing a joint document in which they committed to working “toward complete denuclearization of the Korean Peninsula” and to joining together “to build a lasting and stable peace regime” on the Korean Peninsula. The broad promises largely reiterated past agreements and included a commitment to “establish new U.S.-DPRK relations” but not an agreement to end the technical state of war.
CENTRAL BANKS: The Federal Reserve will start a two-day meeting on interest rates on Tuesday, wrapping up on Wednesday. Investors expect the nation’s central bank to raise interest rates from their current level of 1.75 percent to 2 percent, but most attention will be on how many rate hikes Fed officials are considering doing later this year. On Friday, the Bank of Japan is due to give its latest policy update.
ANALYST’S TAKE: “Deal or no deal? Just don’t ask what comprises a ‘deal’ and we are fine. At the risk of sounding a tad frivolous, that appears to be the truth of the matter,” said Vishnu Varathan of Mizuho Bank in Singapore of the Trump-Kim summit.
ENERGY: Benchmark U.S. crude rose 37 cents to $66.47 a barrel. It was up 36 cents to $66.10 per barrel Monday in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, added 45 cents to $76.91 per barrel in London.
CURRENCIES: The dollar rose to 110.30 yen from 109.48 yen late Monday in Asia. The euro edged up to $1.1804 from $1.1799.