Japanese shares led most Asian stocks lower and the Yen appreciated, as investors eyed risks from Turkey to North Korea.
With optimism over the US-China trade talks fading from earlier in the week, concerns range from iffy prospects for President Donald Trump’s historic summit with North Korea’s leader to Turkey’s financial-market stability as the lira hits successive record lows. Japan’s currency rose the most in almost two weeks at one point as traders sought a haven. Equity benchmarks from Hong Kong to Sydney fell. Treasuries ticked higher, while oil headed lower.
US stocks closed lower on Tuesday after Trump cast doubt on a meeting with Kim Jong Un during his Oval Office meeting with South Korean President Moon Jae-in. Shares had rallied earlier following China’s announcement that it will cut the import duty on passenger cars, signaling a further easing of trade tensions with the US.
Beyond geopolitics, central banks are also in focus this week. The Federal Reserve will release minutes of its latest policy meeting on Wednesday, while the ECB follows suit on Thursday. A raft of US debt sales adds to the busy agenda.
Elsewhere, the euro remained near recent lows as investors weigh Italy’s potential formation of a populist government. Sterling held gains amid speculation there could be another U.K. election and after upbeat comments from a Bank of England policymaker.
This article provided by NewsEdge.