SUMMIT LIVE-Markets likely to be unimpressed by Trump-Kim summit

by Reuters
Tuesday, 26 February 2019 04:47 GMT


Financial markets are unlikely to react much to the summit between U.S. President Donald Trump and North Korea leader Kim Jong Un, according to a research note by Robert Carnell, ING's chief economist for the Asia-Pacific.

"We may (who knows) see a historic ending of the state of war between the two Koreas, but that has been a paper war for decades," Carnell wrote.

"We may get some further offers to denuclearise, but I think we already had this, so what would be new? And there may be some carrot of sanctions removal from the U.S., though no doubt contingent on further progress.

"Politically, sure it would be a positive development. But I can't invest in that."

Historically, there has been little direct correlation between the tensions over North Korea and prices on global financial markets.


Kim is staying at the Melia hotel while he is in Hanoi for the summit.

Just before he arrived on Tuesday, the Vietnamese government announced that the White House media center, a facility for the travelling press, was being shifted from the Melia to another location.

But as things stand, some members of the U.S. press corps travelling with Trump remain individually booked to stay at the Melia. They are due to arrive later on Tuesday and it was not clear if they were being shifted elsewhere.

Kim's move to stay in a hotel where he could be exposed to the scrutiny of the U.S. media "may signal that he is determined to send a strong message about his will to improve North Korea-U.S. relations", said Cheong Seong-Chang, a North Korea expert at the Sejong Institute on the outskirts of Seoul.

Kim waves at the Dong Dang railway station in Vietnam, on the border with China. REUTERS/Athit Perawongmetha KIM ARRIVES IN VIETNAM FOR SUMMIT, TO MEET TRUMP ON WEDNESDAY (0125 GMT)

After a two and a half-day train journey from Pyongyang and through China, Kim was given a red-carpet welcome at the Vietnamese border station of Dong Dang. He then travelled the 170 km (105 miles) to the capital Hanoi by car.

Trump is flying from Washington to Hanoi and arrives later on Tuesday.

The two leaders will have an initial one-on-one meeting on Wednesday evening followed by a dinner that will include advisers, the White House said. There will be a series of meetings between the two sides on Thursday.

On Monday, Trump stressed the benefits to North Korea if it gave up its nuclear weapons. "With complete Denuclearization, North Korea will rapidly become an Economic Powerhouse. Without it, just more of the same. Chairman Kim will make a wise decision!" Trump said in a tweet.

While there is no real expectation that the second meeting between the two will bring a final deal on ridding North Korea of nuclear weapons that threaten the United States, there are some hopes it could lead to a declaration that the 1950-53 Korean War is at last formally over.

What's on the table?

TAKE A LOOK-Trump and Kim prepare for second summit

In his grandfather's footsteps, N.Korea's Kim arrives in Vietnam

Live: North Korea - Reuters social media blog

(Ju-min Park, Raju Gopalakrishnan)

Our Standards: The Thomson Reuters Trust Principles.