China and North Korea joining hands? – Deutsche Bank

According to analysts at Deutsche Bank, overnight, some of the focus has shifted to the news that China has confirmed North Korea’s leader Kim Jong Un has indeed visited Beijing and met with China’s President Xi.

Key Quotes

“Local Chinese press Xinhua reported Kim as saying that “the issue of denuclearization of the Korean Peninsula can be resolved, if South Korea and the United States respond to our efforts with goodwill, create an atmosphere of peace and stability while taking progressive and synchronous measures for the realization of peace”. While there is no sign that an agreement has been made, the language is clearly a lot more conciliatory ahead of a proposed meeting between Kim and President Trump.”

“Despite that development, bourses in Asia have followed the negative US lead from last night and are trading lower with the Nikkei (-1.77%), Kospi (-1.32%), Hang Seng (-1.03%), ASX 200 (-0.68%) and Shanghai Comp (-0.61%) all down as we type. The Yen is a shade weaker while the Korean won has been the biggest gainer this morning.”