In Asian Equity Markets indices advanced on Friday following news that U.S. President Donald Trump had agreed to meet North Korean leader Kim Jong Un. Japan’s Nikkei 225 edged up 0.46 percent after earlier recording gains of more than 2 percent on the news. The broader Topix index gained 0.36 percent. Meanwhile, South Korea’s Kospi advanced 1.16 percent as markets digested the news. Elsewhere, Hong Kong’s Hang Seng Index rose 0.88 percent, while mainland markets saw more subdued gains. The Shanghai composite edged up by 0.17 percent and the Shenzhen composite added 1.05 percent.
In Currency Markets the US dollar rose versus the safe haven yen on Friday as hopes of a breakthrough in the North Korean nuclear standoff rose after U.S. President Donald Trump showed willingness to accept an invitation to meet North Korean leader Kim Jong Un by May. Against the yen, the dollar rose 0.4 percent to 106.66 yen, inching away from a low of 105.24 yen on March 2, the greenback’s weakest level since November 2016. The yen showed little reaction after the Bank of Japan kept its monetary policy steady on Friday, as widely expected. The euro held steady at $1.2310, after falling 0.8 percent on Thursday.
In Commodities Markets oil prices fell on Thursday, headed for a second straight weekly decline on a stronger dollar, signs of an inventory build at the U.S. storage hub in Cushing, Oklahoma, surging U.S. crude production and investor jitters about a potential trade war. Brent crude futures fell 73 cents, or 1.1 percent, to settle at $63.61 per barrel. U.S. West Texas Intermediate (WTI) crude futures fell $1.03, or 1.7 percent, to settle at $60.12 per barrel. Brent was on track for a decline of around 0.8 percent this week, after last week’s 4.4 percent slide. WTI was on track for a 1.5 percent decline after a 3.6 percent slide last week.
In US Equity Markets the three major U.S. stock indexes closed higher on Thursday after President Donald Trump appeared to soften his stance on trade tariffs, easing trade war fears that had had the market on edge for a week. The S&P 500 gained 0.45 percent, to 2,738.97 and the Nasdaq Composite added 0.42 percent, to 7,427.95. Century Aluminum shares fell 7.5 percent after the news as it had been seen benefiting from higher prices if the tariffs were put in place. Shares in U.S. Steel Corp fell 2.9 percent while AK Steel closed down 4 percent. The energy index was the only one of the S&P’s 11 sectors to end the day lower.
In Bond Markets longer-dated Japanese government bond prices edged lower on Friday, as Tokyo stocks gained on easing tensions over North Korea, curbing investor demand for safe-haven debt. The 40-year bond yield rose 1 basis point to 0.890 percent, while the 20-year yield was half a basis point higher at 0.540 percent. The 10-year yield initially nudged up to 0.055 percent, but last stood unchanged at 0.050 percent. The yield on the U.S. benchmark government bond moved within a range of three basis points on Thursday, continuing a trend of muted fluctuation in the week ahead of Friday’s payrolls data.