Positive developments via the Korean Peninsula will be Great news for stocks within the region — in addition to a couple markets in particular, according to a bank strategist on Monday.
U.S. President Donald Trump in addition to North Korean leader Kim Jong Un have both indicated their willingness for a summit. Sean Yokota, head of Asia strategy at Nordic bank SEB, said he believes which geopolitical tensions will ease within the months ahead.
Speaking to CNBC’s “Capital Connection,” he said: “within the next one to two months, when Trump can be coming here, I think geopolitical tensions are low, economic activity’s picking up … generating sure which’s usually positive for equity markets.”
He predicted which stock markets in Japan in addition to Korea in particular will do well.
Yokota said markets in Korea have yet to cost within the positive news.
“I think very little can be priced into actually Great news coming out of North Korea, South Korea, generating sure which could be an extra stimulus to Kospi going up,” he said, referring to the country’s key stock index.
Trump in addition to Kim are likely to have a landmark meeting within the coming weeks, with the U.S. president declaring which he wants to “get peace.” Likely locations are said to be either in Mongolia, Singapore, or the demilitarized zone between North in addition to South Korea.
Kim in addition to South Korean President Moon Jae-In met in April in addition to pledged to push for complete denuclearization of the Korean Peninsula. There are widespread doubts which North Korea will ever give up its nuclear weapons, however.