Asian markets eased on Trump’s cancellation of US-North Korea summit

Stock markets in Asia continued to trader lower on Friday following an unexpected cancellation of the Trump-Kim summit by Washington.

In Japan, the Nikkei 225 hovered near the flat line during the session to end at 22,463.00 points. The broader Topix fell 0.22 percent to 1,771.70 points, with oil-related stocks weighing on it.

South Korea's Kospi benchmark eased 0.21 percent, with gains in the technology sector being capped by falling steelmakers and heavyweight financials.

Australia’s S&P/ASX 200 was down 0.07 percent, with the energy subindex easing more than one and a half percent during the day.

Hong Kong's Hang Seng Index was down 0.78 by the time of this writing, while mainland Shanghai and Shenzhen closed 0.40 and 1.09 percent lower respectively.

On Thursday, President Donald Trump cancelled his meeting with North Korean leader Kim Jong Un, pushing the dollar even lower and boosting demand for safe-havens such as the yen.

"Sadly, based on the tremendous anger and open hostility displayed in your most recent statement, I feel it is inappropriate, at this time, to have the long-planned meeting," Trump said.

The Republican leader said it was Pyongyang’s fault due to a constant inflammatory rhetoric against the United States. Trump also said the US military forces remained in standby.

"I have spoken to South Korea and Japan and they are not only ready should foolish or reckless acts be taken by North Korea, but they are willing to shoulder much of the cost of any financial burden — any of the costs associated by the United States in operations, if such an unfortunate situation is forced upon us," Trump told reports.

However, South Korea President Moon Jae-in wrote on Twitter he was "embarrassed and regretful that the North American summit was not held on June 12 that was scheduled.”

He also added that the “denuclearization of the Korean peninsular and enduring peace are historic tasks that can not be abandoned or delayed."

Economic Calendar:

Ahead in today’s session, Germany’s business expectations, current assessment and lfo business climate for May are all to be released at 08:00 GMT. Analysts are forecasting 98.5, 105.5 and 102 respectively. Investors will get a look at the UK Q1 GDP half an hour later.

In the United States, focus will be at durable goods orders for April at 12:30 GMT. Federal Reserve Chair Powell will speak at 13:00 GMT, followed by FOMC Bostic and Kaplan at 15:45 GMT. Michigan’s consumer sentiment for May is up at 14:00 GMT.

FortFS