Asian Stocks Ends with Mixed Results, US-N. Korea on Positive Note
Asian stocks closed mixed on Monday amid positive weekend news about US-North Korea relations. US President Donald Trump appeared to confirm summit with North Korean leader Kim Jong-un that will most likely happen.
The Nikkei 225 gained 0.13%, or 30.30 points, to close at 22,481.09. The broader Topix closed down by 0.07%, with the oil sub-index losing 4.14% as oil prices weakened.
Furthermore, South Korea’s Kospi climbed 0.74% to 2,478.96. This was mainly from developments gave optimism that a US-North Korea meeting in June could happen regardless being canceled last week.
Gains in the benchmark came as steelmakers and other manufacturing companies advanced. Posco rose 2.31% and Hyundai Steel advanced 14.48%. However, large cap technology names closed lower.
Moreover, Asian stocks in China were mixed. The Hang Seng Index jumped 0.67% to 30,792.26, but the Shanghai Composite plunged 0.19% to 3,135.35. In addition, the Shenzhen composite finished lower by 0.22%.
Additionally, ZTE Corp made headlines as Trump said in a tweet that the US would allow the company to remain in business after paying a $3.1 billion fine.
ZTE is required to hire American compliance officers to monitor its operations, according to sources.
Meanwhile, Australia’s S&P/ASX 200 also saw losses. The index ended lower by 0.48% at 6,004 as losses in energy and materials weighed. Woodside Petroleum dipped 3.53%, and Beach Energy plummeted 9.59%.
Asian Markets found Support on Positive News about US-N. Korea
“Our United States team has arrived in North Korea to make arrangements for the Summit between Kim Jong Un and myself,” Trump said in a tweet on Sunday.
“I truly believe North Korea has brilliant potential and will be great economic and financial Nation one day,” Trump said. “Kim Jong Un agrees with me on this. It will happen!”
That fueled optimism on the geopolitical front. US officials arrived in North Korea on Sunday to help plan a summit between the 2 leaders. This was a day after the 2 Korean leaders held a surprise meeting on their own.
Elsewhere, Japanese Prime Minister Shinzo Abe said on Monday that Japanese auto manufacturers have created jobs and made huge contributions to the US economy.
His announcement came after the Trump administration decided last week to start a national security investigation into auto imports. This could leave to new US tariffs on foreign automakers.
“As a country that prioritizes a rule-based, multilateral trade system, Japan believes that any steps taken on trade must be in line with World Trade Organization rules,” he said.
