THE yen dropped and US stock futures rose after North Korea offered a measured response to President Donald J. Trump’s decision to cancel a summit with that country’s leader. Asian shares were mixed, and crude oil held losses.
Shares in Japan, Hong Kong and South Korea saw modest declines and were heading for weekly losses as trade tensions simmer and investors eye risks from emerging markets. Crude oil held losses after Russia’s energy minister reiterated that the Organization of the Petroleum Exporting Countries and its partners will discuss phasing out supply curbs when they meet next month. Turkey’s lira resumed its slump as traders weighed whether an emergency rate hike was enough to stem losses.
Geopolitics was back on the agenda with Trump’s letter to the North Korean leader Kim Jong Un, in which he blamed the “tremendous anger and open hostility” in recent statements from Pyongyang for his decision. North Korea’s government said in a statement that it was surprised at the cancellation and remained willing to meet with the US at any time.
Elsewhere, the euro remained weaker, alongside the pound, as questions swirl around the Italian populist government’s economic policies and Brexit negotiations loom large over British assets.
These are some key events remaining to watch this week:
At the Saint Petersburg Forum on Friday, Russian President Vladimir Putin and French President Emmanuel Macron, IMF Managing Director Christine Lagarde and Japan Prime Minister Shinzo Abe participate on a panel moderated by Bloomberg News Editor in Chief John Micklethwait. Also on Friday, European Union finance ministers discuss the latest on Brexit talks, in Brussels.
These are the main moves in markets:
Stocks
THE MSCI Asia Pacific Index fell 0.2 percent as of 3:01 p.m. Tokyo time. Topix index fell 0.2 percent. Hong Kong’s Hang Seng Index dropped 0.5 percent. Kospi index fell 0.2 percent. Futures on the S&P 500 Index rose 0.2 percent.
Currencies
THE Bloomberg Dollar Spot Index rose 0.1 percent. The Japanese yen fell 0.3 percent to 109.53 per dollar. The euro fell 0.1 percent to $1.1702.
Bonds
THE yield on 10-year Treasuries rose one basis point to 2.99 percent. Australia’s 10-year yield fell two basis points to 2.785 percent. German bunds were yielding 0.478 percent.
Commodities
WEST Texas Intermediate crude fell 0.3 percent to $70.50 a barrel. Gold declined 0.2 percent to $1,302.14 an ounce. LME copper was flat at $6,877.00 per metric ton.