TOKYO (Reuters) – Asian stocks weakened slightly on Friday as market sentiment faltered after US President Donald Trump canceled a key summit with North Korea, though investor concerns were softened by expectations. that the two countries continue the dialogue.
MSCI's broader index of Asian stocks and the Pacific out of Japan. MIAPJ0000PUS ticked down. The Kospi .KS11 from South Korea fell 0.65 percent. The Nikkei .N225 from Japan fell 0.3 percent.
On Wall Street, the S & P 500 .SPX closed 0.2 percent lower on Thursday, although it recovered a large part of its previous loss of 0.95 percent.
Security offers boosted bond prices globally, which reduced returns.
The yield on 10-year Treasury bonds US10YT = RR stood at 2.988 percent, falling more from the seven-year high of 3.128 percent reached a week ago.
The 10-year German Bund yield reached a 4-1 / 2 month low of 0.461 percent DE10YT = TWEB, having fallen more than 11 basis points so far this week.
Despite the market shift to safe haven assets, there are no immediate signs of widespread panic among investors with the Wall Street volatility index. VIX, seen as an indicator of investor fears, ending in a minimum of four months on Thursday.
Analysts say that is mainly because investors are getting used to Trump's dramatic negotiation style, in which he makes drastic calls before reaching compromises, and increasingly see his North Korean counterpart, Kim Jong. A, adopt a similar approach.
"I suspect that they could not agree on denuclearization, but looking at the comments of both parties, none of them rules out holding a meeting in the future, so I do not expect to see an immediate escalation in military tension," said Masahiro. Ichikawa, strategist of Sumitomo Mitsui Asset Management.
North Korea's deputy foreign minister, Kim Kye Gwan, said Friday that Pyongyang is open to solving problems with the United States.
In addition to North Korea, the possibility of US tariffs on foreign car imports is fueling concerns about the trade war, although investors also see this threat from Washington as a tactic to obtain better bilateral agreements from major nations. auto exporters.
In the currency market, traditional safe havens such as the Swiss franc and the yen were in favor.
The dollar was trading at 109.31 yen JPY =, about 2 percent from the four-month high of 111,395 on Monday and it looks like it will record its first weekly loss in nine weeks.
The yen is seen as a safe haven because of Japan's status as the world's largest net creditor nation.
Against the Swiss franc, the dollar extended losses to reach its lowest level since April of 0.9886 francs during the night and the last remained at 0.9912.
The franc also remained close to a maximum of two and a half months against the euro hit earlier this week, trading at 1.1615 francs per euro EURCHF = EBS.
The euro is trading at $ 1.1712 EUR =, slightly above its six-month low of $ 1.1676 reached on Wednesday, to mark its sixth consecutive week of decline.
The currency was affected by concerns over a new coalition government in Italy, consisting of two parties against the establishment, as well as growing signs of a slowdown in the currency bloc.
Oil prices fell, partly on speculation that supplies from Venezuela and Iran could push the Organization of the Petroleum Exporting Countries (OPEC) to cut production cuts since early 2017.
OPEC may decide in June to lift production to compensate for the reduced supply from Venezuela and Iran affected by the crisis, which was affected by the US decision to withdraw from the nuclear weapons control agreement, sources from OPEC and the industry said. oil to Reuters.
Brent crude futures were stable at $ 78.80 per barrel, after a loss of 1.27 percent the previous day. US crude oil futures West Texas Intermediate (WTI) fell slightly to $ 70.74 per barrel. They lost 1.57 percent on Thursday.