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Stocks Mixed, Yen Down as History Made on Korea

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Stocks in Asia meandered and the yen weakened as investors await the details of a "comprehensive" and historic document signed by U.S. President Donald Trump and North Korean dictator Kim Jong Un.

With prospects for continued dialog between the two leaders diminishing geopolitical risks, the safe-haven yen offered the biggest reaction in an otherwise muted response by investors to the summit. Equities from Tokyo to Sydney swung between gains and losses. U.S. Treasury yields steadied. S&P 500 Index and FTSE 100 futures barely budged. The pound extended a decline as Theresa May’s landmark Brexit legislation goes to Parliament. Oil recovered as cracks in a pipeline threatened Nigerian exports.

Trump hailed the document signed with Kim as “very important,” while the North Korean leader added that e “world would see a major change” following the unprecedented event. He said he would "absolutely" invite Kim to the White House. Trump is expected to deliver a press briefing later in the day Tuesday.

Traders will soon switch focus to the Federal Reserve, which is expected to raise interest rates Wednesday, while European Central Bank officials later in the week are poised to hold formal talks on ending its bond-buying program. The Bank of Japan meets Friday, with no change to policy expected.

“Despite the historic event, the markets haven’t moved much because they’ve already discounted the risk of military conflict,” Goohoon Kwon, co-head of Korea research and senior Asia economist at Goldman Sachs Group Inc. told Bloomberg Television before the document signing. What’s more important going forward is the “follow through, execution, implementation” of any agreements, he said.

Meanwhile, Trump’s top economic adviser, Larry Kudlow, was “doing well” on Monday night after suffering a heart attack, a White House spokeswoman said.

These are some key events to watch this week:

U.K. Prime Minister Theresa May faces votes that could derail her Brexit policy, also Tuesday

The Federal Reserve is expected to raise interest rates Wednesday as the U.S. economy remains solid

The European Central Bank rates decision comes Thursday with a briefing from President Mario Draghi

The Bank of Japan June monetary policy decision and news conference is Friday

FIFA expects more than 3 billion viewers for the World Cup that begins this week in Russia

And these are the main moves in markets:

Stocks

Topix index rose 0.3 percent at the 3 p.m. close in Tokyo.

Kospi index was little changed.

Hang Seng Index rose 0.3 percent.

Futures on the S&P 500 Index rose 0.1 percent.

FTSE 100 futures gained 0.1 percent.

The MSCI Asia Pacific Index was little changed.

Currencies

The Bloomberg Dollar Spot Index rose 0.2 percent.

The Japanese yen fell 0.3 percent to 110.37 per dollar.

The euro fell 0.2 percent to $1.1764.

The pound fell 0.2 percent to $1.3348.

Bonds

The yield on 10-year Treasuries rose one basis point to 2.96 percent.

German bund yields rose about 2 basis points to 0.51 percent.

Commodities

West Texas Intermediate crude rose 0.1 percent to $66.16 a barrel.

Gold declined 0.3 percent to $1,297.10 an ounce.

LME copper fell 0.2 percent to $7,243 per metric ton.

Source: Bloomberg