The financial markets are fickle ahead of U.S. talks with North Korea on Tuesday in Singapore. At noon Eastern on Monday, The Dow Jones Industrial Average was up 0.1% while the S&P 500 is up 0.34% as speculation remains on how well the meeting goes with U.S. President Donald Trump and North Korean leader Kim Jong-un.
ETFs concentrated in Southeast Asia are also undecided as iShares China Large-Cap ETF (NYSEArca: FXI) is down 0.21%, iShares MSCI Japan ETF (NYSEArca: EWJ) is up 0.40% and iShares MSCI South Korea Index Fund ETF (NYSEArca: EWY) is up 0.53%. Other ETFs reacting around the globe include iShares S&P Europe 350 Index ETF (NYSEArca: IEV)—up 1.0% and iShares MSCI Emerging Markets Index ETF (NYSEArca: EEM)—up 0.10%.
President Trump and North Korean leader Kim Jong-un hope to ease tensions between the U.S. and North Korea with a historic meeting that will cover topics, such as the denuclearization and sanctions relief. A boost to both Chinese and U.S. equities will certainly be a byproduct of a successful outcome.
“I told President Trump that in our meeting, North Korean leader Kim Jong-un said he’s committed to denuclearization,” said South Korea’s national security adviser to White House reporters. “Kim pledged that North Korea will refrain from any further nuclear or missile tests.”
While these signs point to early optimism, it remains to be seen whether the meeting proves to be a success or failure. As such, the market remains noncommittal.