Asian markets looked set to advance in early Tuesday trade as investors shrugged off trade-related jitters and ahead of several key events this week, including a highly anticipated meeting between U.S. President Donald Trump and North Korean leader Kim Jong Un in Singapore.
The high-profile Trump-Kim summit — the first meeting between sitting leaders of both countries — is set to take place Tuesday morning, but analysts have said they expect little direct impact on the markets.
Trump and Kim will likely discuss future bilateral ties, although no major breakthroughs are expected from the meeting.
Markets’ positive tone came despite the uncertainty in anticipation of several key events expected this week.
The risk-on tone may have been a function of low volumes ahead of the Federal Reserve and European Central Bank this week, as asset allocators are unlikely to make strategic investment decisions until those events and the Singapore summit are out of the way.
Ahead, the Fed begins its two-day policy meeting on Tuesday, with markets expecting a quarter-point interest rate hike announcement on Wednesday. The ECB and Bank of Japan hold meetings in the second half of the week.
Trader Aleksandar Kumanov