Overnight news that U.S. President Donald Trump had canceled a scheduled summit with Kim Jong Un looked set to be in focus on Friday, with futures tipping a lower start to the session for Asian markets.
Nikkei futures traded in Chicago were down 0.68 percent compared to the benchmark’s Thursday close. Australian SPI futures were lower by 0.45 percent at the end of the last session.
U.S. stocks finished the session lower after Trump canceled a planned meeting with North Korean Leader Kim Jong Un that had been set to take place in Singapore on June 12.
The Dow Jones industrial average slipped 0.3 percent, or 75.05 points, to close at 24,811.76. Still, that was less severe than the 280-point fall seen after news of the cancellation was announced. The S&P 500 edged lower by 0.2 percent to 2,727.76 and the Nasdaq composite ended the day little changed at 7,424.43.
Trump said participating in the summit would be “inappropriate” given the “tremendous anger and open hostility” displayed by North Korea, which had reportedly suspended direct communication with the U.S. this week.
But following Trump’s announcement on the cancellation, North Korea said it was willing to resolve issues with the U.S., the country’s state-run KCNA reported on Friday.
Gold, seen as a safe-haven during periods of uncertainty, got a boost on the back of that news, with prices rising above the $1,3000 per ounce level. The Japanese yen, meanwhile, traded at 109.27 to the dollar at 7:12 a.m. HK/SIN.
Also in focus was news that the U.S. Department of Commerce had started an investigation into automobile imports on a “national security” basis. U.S. Commerce Secretary Wilbur Ross told CNBC on Thursday that “economic security is military security.”
Markets in the region closed mostly lower in the last session following the news, with Japanese and South Korean automobile stocks coming under pressure. The Nikkei 225 ultimately finished the day down more than 1 percent.
European auto stocks also pulled back on the news, with Porsche and Daimler dropping 3.02 percent and 2.77 percent, respectively. The pan-European Stoxx 600 ended lower by more than 0.5 percent.
Source: cnbc china
Asian stocks poised to slide after Trump cancels North Korea summit