G7 summit

Asia stocks shook off initial modest losses and edged up on Monday ahead of an historic U.S.-North Korea summit that investors hope might pave the way to ending a nuclear stand-off on the Korean peninsula.

What took place at the G7 weekend was within the scope of earlier expectations. And while the countries disagreed on trade, they did seem to show a unified front on the North Korean issue, so there is also a positive element from the G7 affecting risk sentiment,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.

In currencies, the US dollar took a dip after Trump left early at the Group of Seven (G7) Summit held in Canada over the weekend. He later tweeted that he was backing out of the joint communique and lashed out against Canadian Prime Minister Justin Trudeau. EURUSD which was lifted last week amid the prospect of the ECB signalling its exit from easy policy, was 0.25 percent higher at 1.1797. USDJPY was 0.2% higher as regional equities gained and the U.S. Treasuries yields rose ahead of a raft of auctions.

In Commodities, gold prices were up on Monday as the dollar softened after U.S. President Donald Trump decided to back out of the G7 Summit joint communique, ahead of his historic meeting with North Korean leader Kim Jong Un and the central bank’s policy meeting this week.

Oil prices fell on Monday, pulled down by rising Russian production and US drilling activity creeping up to its highest in more than three years. Brent crude futures, the international benchmark for oil prices, were at $76.21 a barrel at 5.04am GMT, down 25c or 0.3% from their last close.

For today important economic releases include the Manufacturing Production m/m and Average Earnings Index 3m/y affecting mainly the GBP.