Asian Markets Remain Cautious Following Trump-Zelensky Talks
Asian markets have shown little change on Tuesday, following a lukewarm session on Wall Street, as investors await further developments from the recent talks between US President Donald Trump and Ukrainian President Volodymyr Zelensky.
Trump held what he called “very good” talks with Ukrainian and European leaders to discuss a possible end to the ongoing three-year war. This meeting was followed by a phone call between Trump and Russian President Vladimir Putin, with whom he had met in Alaska the previous week. According to Trump, discussions are underway to arrange a meeting between Putin and Zelensky at a yet-to-be-determined location.
In response to the diplomatic efforts, oil prices, which had experienced recent volatility, have retreated after gains on Monday. As a major crude producer, Russia’s involvement in the conflict has contributed to fluctuations in oil prices.
In other market news, SoftBank’s shares have dropped by two per cent after announcing plans to invest $2 billion in Intel. This move comes as the US government is reportedly considering a 10-per-cent stake in the troubled US chip giant.
Market participants are eagerly awaiting a speech by US Federal Reserve chief Jerome Powell at the annual retreat of global central bankers in Jackson Hole. Powell’s address may provide further insights into the Fed’s plans for interest rates, following mixed inflation data released last week.
According to Stephen Innes, an expert at SPI Asset Management, even a hint of easing by Powell could be enough to trigger profit-taking, while a note of caution could lead to a scramble for exits.
In terms of key market figures, Tokyo’s Nikkei 225 index was down by 0.1 per cent at 43,652.32, while Hong Kong’s Hang Seng Index rose by 0.1 per cent to 25,195.36. Shanghai’s Composite Index also experienced a 0.2-per-cent increase, reaching 3,733.74.
The US dollar eased slightly against major currencies, with the euro trading at $1.1652, a marginal decrease from Monday’s rate of $1.1666. The pound stood at $1.3498, having dipped slightly from $1.3503.
As investors continue to monitor the developments in the Trump-Zelensky talks, as well as the anticipated speech by Powell, market sentiment remains cautiously optimistic, reflecting the ongoing uncertainty and sensitivity to global events.
Current market figures:
– Tokyo – Nikkei 225: DOWN 0.1 per cent at 43,652.32
– Hong Kong – Hang Seng Index: UP 0.1 per cent at 25,195.36
– Shanghai – Composite: UP 0.2 per cent at 3,733.74
– New York – Dow: UP 0.1 per cent at 44,946.12 (close)
– London – FTSE 100: UP 0.2 per cent at 9,157.74 (close)
– Euro/dollar: DOWN at $1.1652 from $1.1666 on Monday
– Pound/dollar: DOWN at $1.3498 from $1.3503
– Dollar/yen: DOWN at 147.78 yen from 147.89 yen
– Euro/pound: DOWN at 86.33 pence from 86.40 pence
– West Texas Intermediate: DOWN 0.5 per cent at $63.12 per barrel
– Brent North Sea Crude: DOWN 0.3 per cent at $66.32 per barrel
