Early on Monday, Reuters came out with the news that South Korean President Moon Jae-in and Japanese Prime Minister Shinzo Abe will meet China’s President Xi Jinping separately before going to the southwestern city of Chengdu for a trilateral meeting with Chinese Premier Li Keqiang.
Key quotes
Though various economic matters will also be on the agenda – as well as tensions between Seoul and Tokyo – North Korea appears likely to dominate the agenda.
North Korean leader Kim Jong Un held a meeting of top military officials to discuss boosting the country’s military capability, the state news agency reported on Sunday.
North Korea has set a year-end deadline for the United States to change what it says is a policy of hostility amid a stalemate in efforts to make progress on their pledge to end the North’s nuclear program and establish lasting peace.
Though South Korea sees China as instrumental in reviving negotiations, it has so far sidestepped questions on whether it supports the new proposal by Beijing and Moscow. Japan, which has historically been a staunch supporter of sanctions against North Korea, has also refrained from commenting on the proposal.
FX implications
Although news like this seems to have a little market impact unless awaited for any specific results, focus on North Korea should exert downside pressure on the risk tone. That said, the US 10-year treasury yields stay on the back foot to 1.91% by the press time of early Monday.
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