NEW YORK: Stephen Innes has been buying gold since the news broke that US President Donald Trump had canceled his planned summit with North Korean leader Kim Jong Un.But that aside, he doesnt seem too bothered.Its a bump in the road, Innes, the head of trading at Oanda Corp.
in Singapore, said.
The road to prosperity offered to North Korea by the US, South Korea and Japan is just too tempting for North Korea to pass up.
The situation will get ironed out, just not as quickly as the market may have wanted.North Korea said it was surprised by Trumps decision, and that the country remains willing to meet at any time.
In a statement Friday by state-run KCNA that cited Vice Foreign Minister Kim Kye Gwan, North Korea vowed to continue to pursue peace and signaled it would give Washington more time to reconsider talks.Market reaction was muted in Asian trading Friday, with Japans benchmark Topix index and a regional equity gauge trading slightly lower.
US stocks dropped after Trumps announcement, before paring losses to close down 0.2 per cent on Thursday.The low-key risk-off move was about par for the course, Innes said.
A military conflict is highly unlikely, he said.BRINKSMANSHIPIts a shame that it has been canceled as both administrations sit on the verge of something great, said James Soutter, head of global equities at K2 Asset Management Ltd.
in Melbourne.
That said, the process isnt over, and one has to try to figure out how much brinksmanship is at play.
Soutter said he expected selling of South Korean stocks, and that hed look to buy them if the market overreacted.As for what hes watching for next, Soutter said its who will flinch first.Both are playing the man, not the ball, and in such as testing each others limits, Soutter said.
Trump has just shown that he wont fold.
Its now back in Kims corner.Its part of the posturing and chess game, said Kay Van-Petersen, a Singapore-based global macro strategist with Saxo Capital Markets.
The summit will eventually happen just a question of time and date.CHINA LINKNorth Koreas remarks got tougher as the ties between China and North Korea strengthened, said Hideyuki Ishiguro, a senior strategist at Daiwa Securities Co.
in Tokyo.
So, some people in the market were skeptical about the feasibility of the US-North Korea summit.
Still, Trump left the door open to a summit, so this isnt a complete break-off.NOT OVERI dont think its all over yet, said Heo Pil Seok, CEO of Midas International Asset Management in Seoul.
Trump seems to be testing the water by declaring the cancellation.Chua Hak Bin, a senior economist at Maybank Kim Eng Research Pte in Singapore, agreed.
The cancellation is a major setback, he said.
But both the US and North Korea are still talking and it wouldnt be a surprise if the Singapore summit still takes place at a later date.Like Innes, Chua isnt too fussed about the news.
Investors are becoming accustomed to the Trump volatility and decision flip-flops, he said.
Markets should not overreact to this news.The market is waking up to the fact that the historic summit between the US and North Korea will not play out like a Hollywood blockbuster, but a long-running Korean drama series, said Eli Lee, head of investment strategy at Bank of Singapore Ltd.
For now, both sides have not closed the door on an eventual meeting -- I think that is key.NO BIG DEALThis is no big deal, said Hao Hong, chief strategist at Bocom International Holdings.
This is all within expectation.
Come on, who had expected that they were really going to meet