Bloomberg HONG KONG (Bloomberg) — After a year filled with “Rocket Man” insults and threats of a nuclear war, U.S. President Donald Trump and Kim Jong Un pledged to work toward peace negotiations.
And the measures of volatility in South Korea’s financial markets reflect the shift away from conflict.
“While there is no promise of reunification coming out of the summit, this event could perhaps serve as the single most significant economic event transforming Asia and providing immense opportunities for citizens and investors,” said Mark Mobius, founding partner at Mobius Capital Partners in London. “The negotiations at the summit could lead to an equally transforming process as the German reunification and the fall of the Iron Curtain.”
The Kospi 200 Volatility Index, a gauge of investor expectations for future price swings, has tumbled 46 percent since jumping to a two-year high in February at the start of the Winter Olympics in South Korea as investors watched for provocative activity from North Korea. The Kospi 200, which includes Samsung Electronics Co. and SK Hynix Inc. among its largest members, has since advanced 3.9 percent.