International media reports say Asian markets mostly fell Thursday, led by Seoul, as a summit between Donald Trump and Kim Jong Un ended abruptly without an agreement.
Equities had been fluctuating through the day on tempered optimism over China-US trade talks, weak factory data from Beijing and fresh geopolitical tensions in Kashmir, according to AFP.
But they reportedly took a decisive turn south after an expected lunch and signing ceremony between the US and North Korean leaders was called off at the last minute.
The shock news came just hours after Kim raised the prospect of a permanent US diplomatic presence in Pyongyang and Trump said he was in “no rush” for a speedy deal over North Korea’s nuclear program.
Both men left the summit venue in Hanoi without a public signing ceremony and Trump later told reporters he was not willing to give in to Kim’s demands to lift sanctions on the country.
“It was about the sanctions,” he said. “Basically, they wanted the sanctions lifted in their entirety, and we couldn’t do that.”
However, he said the talks ended on friendly terms and he was hopeful of progress further down the line.
Seoul dived 1.8 percent and Tokyo ended 0.8 percent lower, while Shanghai and Hong Kong both shed 0.4 percent. Singapore shed 0.8 percent.
Manila tumbled more than two percent and Jakarta was more than one percent down while Bangkok slipped 0.4 percent, though there were gains in Sydney and Wellington.
The global rally that has characterized most of this year had already taken a knock after US Trade Representative Robert Lighthizer told lawmakers that “real progress” had been made in trade talks with China, but a lot of work was still needed before a pact is signed.
While his comments did not derail expectations of an agreement at some point – with both sides reporting good progress and Trump delaying a deadline for a deal – it did give traders pause for thought, observers said.
Nervousness continues to stalk trading floors after Pakistan and India said they had shot down each other’s fighter jets on Wednesday, fuelling worries of a conflict between the nuclear-armed neighbors.
The developments followed the February 14 suicide bombing by militants in the disputed Kashmir region that that killed 40 Indian troops.
Pakistan Prime Minister Imran Khan called for “better sense” to prevail.
