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Asian Stocks Extend Gains as Trump Says Summit with Kim is 'very, very good'

Asian stocks rose in afternoon trade on Tuesday

Investing.com – Asian stocks rose in afternoon trade on Tuesday as U.S. President Donald Trump said the meeting with his North Korea counterpart Kim Jong-un is “very, very good.”

Trump said he had forged a "good relationship" with Kim at the start of a historic summit in Singapore. In response, Kim vowed to work with the U.S President, although he noted “there will be challenges ahead.”

"We overcame all kinds of scepticism and speculations about this summit and I believe that this is good for the peace," Kim said. "I believe this is a good prelude for peace."

The meeting between the two leaders kicked off on Tuesday with smiles and handshakes, while staff-level meetings also went well, according to Trump’s tweets 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.

In Asia, Japan’s Nikkei 225 was up 0.7% by 1:00AM ET (05:00 GMT), while China’s Shanghai Composite and the Shenzhen Componentt climbed 0.5% and 0.8% 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 0.3% higher, and Australia’s S&P/ASX 200 was also up 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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