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Asian Equities Rise; All Eyes on U.S.-North Korea Summit

Asian equities rose in morning trade on Tuesday – Asian equities rose in morning trade on Tuesday as U.S. President Donald Trump and his North Korea counterpart Kim Jong-un shook hands and began their highly anticipated meetings in Singapore.

Staff-level meetings between the two countries were "going well and quickly ... but in the end, that doesn't matter. We will all know soon whether or not a real deal, unlike those of the past, can happen!” Trump tweeted just hours before the meeting.

The U.S. would likely keep sanctions in place until North Korea gives up its nuclear weapons capability completely, Secretary of State Mike Pompeo said ahead of the summit, though he noted “unique” guarantees could be offered to ease the regime’s security concerns.

Overnight, the S&P 500 Index edged higher, although it gave up some of its gains just before the close.

In Asia, Japan’s Nikkei 225 was up 0.2% by 9:50PM ET (01:50 GMT), while China’s Shanghai Composite and the Shenzhen Component climbed 0.1% and 0.4% respectively.

Xiaomi Corp made headlines as the company said it would raise about $5 billion from the sale of Chinese depositary receipts (CDR). Citing people familiar with the matter, reports claim that the company is targeting a valuation of about $75 billion.

In a Chinese prospectus, Xiaomi said it plans to use about 40% of the proceeds to enlarge its global footprint. “In 2018, the company plans to enter or consolidate positions in Southeast Asian and European markets,” the company said.

Xiaomi reported a 7 billion yuan ($1.1 billion) net loss on revenue of 34.4 billion yuan in the first quarter.

Elsewhere, Hong Kong’s Hang Seng Index traded 0.2% higher, and Australia’s S&P/ASX 200 was also u 0.1%.

Looking ahead, the Federal Reserve is expected to raise interest rates on Wednesday, while European Central Bank officials are set to discuss on ending its bond-buying program. The Bank of Japan’s meeting is due on Friday, with no change to policy expected.

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