Asian Markets lose ground this Morning

Asian equity and financial markets were subdued and lower this morning. Investors shifted their focus from the North Korean Summit, which just ended in Singapore with the United States, to today’s monetary policy decision from the Federal Reserve.

That decision is due out at 6 pm GMT. The Fed will likely raise rates 25 basis points but investors will be listening for clues to further rate hikes in 2018.

The Asian benchmark bourse in Japan, the Nikkei 225 was slightly higher. Shares gained 0.15 percent. Major shipper plays gained as did utilities. The materials sector was lower. This weighed on the broader index. The major automakers gained one percent.

In Australia, the S&P ASX 200 lost 0.51 percent. Most sectors fell this morning. The heavily weighted banking sub index was down 0.65 percent. Resource names also fell lower this morning. Utilities shares, however, were up eight percent.

Elsewhere in the Asian and Pacific Rim, markets in China’s sphere of influence also fell. In Hong Kong, the Hang Seng Index was down. Shares gave up 49 percent. On the Chinese mainland, the Shanghai composite lost ground as well. Shares fell by 0.55 percent.

There was lower trade volume this morning as the financial markets in South Korea and Indonesia were closed.

Asian and other Global Financial Markets have little Reaction to the Summit in Singapore

The global financial markets, for the most part, shrugged off yesterday’s summit between President Donald Trump and North Korean leader Kim Jong Un. The historic meeting, which was held Singapore, marked the first time that leaders of the two nations met while still in office.

The summit ended with the two nations signing an agreement that promised a lasting “peace regime” on the Korean Peninsula. The statement met criticism, as it lacked details and Trump caught South Korea off guard by cancelling their war games. Trump called them “provocative.”