The historic meeting between U.S. President Donald Trump and North Korean leader Kim Jong-un yielded a peace document that included the denuclearization of North Korea. While on the surface, the broad strokes of the document sound appealing, skepticism still remains as to the lack of details on how the denuclearization process will occur.
Nonetheless, President Trump is quick to praise the results of the meeting.
“I think he liked me and I like him,” Trump told Voice of America’s Greta Van Susteren in an interview. “And I understand the past and, you know, nobody has to tell me, he’s a rough guy. He has to be a rough guy or he has been a rough person. But we got along very well. He’s smart, loves his people, he loves his country. He wants a lot of good things and that’s why he’s doing this.”
Related: Markets Undecided Ahead of U.S.-North Korea Talks
Four Points of Peace Document
The peace document itself reveals an agreement established between the United States and the Democratic People’s Republic of Korea that revolves around four points.
1. The United States and the DPRK commit to establish new U.S.-DPRK relations in accordance with the desire of the peoples of the two countries for peace and prosperity.
2. The United States and the DPRK will join their efforts to build a lasting and stable peace regime on the Korean Peninsula.
3. Reaffirming the April 27, 2018 Panmunjom Declaration, the DPRK commits to work toward complete denuclearization of the Korean Peninsula.
4. The United States and the DPRK commit to recovering POW/MIA remains, including the immediate repatriation of those already identified.
Southeast Asia ETFs Reacting
Many experts feel the peace document is simply a matter of window dressing since the document lacks succinct details on how the actual denuclearization process will take place. Moreover, there is no guarantee that North Korean leader Kim Jong-un will follow through on the steps outlined in the agreement itself.
“Unfortunately, the entire document is short on details,” said United States Senate minority leader Chuck Schumer. “It is worrisome, very worrisome, that this joint statement is so imprecise.”
As such, Southeast Asia ETFs are reacting with iShares China Large-Cap ETF (NYSEArca: FXI) down 0.042%, iShares MSCI Japan ETF (NYSEArca: EWJ) is down 0.43% and iShares MSCI South Korea Index Fund ETF (NYSEArca: EWY) is down 0.62%.
Until there is a more definitive outline that details the particulars regarding denuclearization, the markets could remain skeptical in the future.
For latest news on North Korea and the Summit in Singapore, visit our North Korea category.