Asian markets started Monday on a mixed fashion as investors set their eyes on U.S. President Donald Trump’s state visit to Japan.
The Shenzen composite and Shenzhen component kicked off the Monday trade with a gain of 0.34% and 0.16%, respectively. However, the Shanghai composite suffered a 0.24% decline.
Meanwhile, in Japan, the Nikkei 225 and Topix started strong with a 0.31% and 0.37% gain, respectively. Hong Kong index lost 0.56%. South Korea’s Kospi was down 0.1% while Australia’s ASX 200 traded flat.
Investors also brace for results as EU election nears its end. This year’s vote was highly anticipated. Exit polls and early results show that the UK’s newly-formed Brexit Party is set to overthrow the country’ two main parties.
The euro rose against the dollar during Monday morning trade. It recovered from $1.1130 last week to $1.1211.
Trump’s State Visit to Japan
On other news, U.S. President Donald Trump visited Japan for security- and trade-focused talks. Trump, who recently increased tariffs on Chinese goods, said Tokyo has “had a substantial advantage” over Washington for “many, many years”. He added that a deal between Tokyo and Washington to address the latter’s trade deficit is “getting closer”. The U.S. had a deficit of $56.8 billion in goods and services with Japan last year, according to U.S. Trade Representative.
However, Ray Attrill, head of foreign exchange strategy at National Australia Bank, said, “the trade rhetoric sound(s) all warm and fuzzy, but there is no expectation a comprehensive trade deal will be struck anytime soon”.
The U.S. dollar index was at 97.564 after slipping from levels above 98.1 last week, while the Japanese yen stood at 109.45 against the greenback from 110.4 in the previous trading week.
Oil prices were also mixed with international benchmark Brent crude futures contract added 0.12% to $68.77 per barrel while U.S. crude futures shed 0.19% to $58.52.
