Stock markets across Asia rose as North Korean leader Kim Jong Un made history by crossing the border into South Korea to hold talks over his nuclear weapons program. Investors welcomed the occasion with a mix of optimism and caution.

One thing most people believe now is that no one can really tell how this whole event will play out.

A strategist at Sumitomo Mitsui Trust Bank Ltd. in Tokyo, Ayako Sera said:

“You can’t tell what’s going to happen from here, but since we’ve come this far, it also doesn’t seem likely that things will abruptly take a turn for the worse, and the talks will fall apart.”

Here’s what other strategist and investors have to say about the matter:

Not Main Event

Chief executive officer of Midas International Asset, Heo Pil-Seok said the summit is only to create a peaceful atmosphere, and what matters most is the outcome of the U.S.-North Korea meeting.

Heo continued, saying:

“Many people are saying North Korea will benefit a lot from the meeting with the United States President Donald Trump, such as putting a stop the nuclear-weapons program, in return for getting massive economic aid or signing a non-aggression treaty with the United States.”

“But It’s still too early to tell if the Korea discount is set to be solved.”

A Plus for Global Stocks

According to Yoshinori Shigemi, a global market strategist at JPMorgan Asset Management Japan Ltd, even though it might take time to see how effective this turns out to be, it is surely a plus for global equities. Gains however have been posted today on Asian markets, with Nikkei 225, a weighted average market index measuring performance of 225 biggest Japanese companies continued to rally over the course of today’s session.

Good for Korean Economy

Korean Macquarie Investment Management’s chief investment officer for equities, Park Hong-Sik, said he isn’t sure about the short-term effect this event will have on the markets, but it will certainly have a positive effect on the Korean economy on the long run.

Watch China

“Talks between China and North Korea will be key to resolving this problem,” said Hyun-Su Kim, director of equity investment at IBK Asset Management.

In the meantime, it is likely “react calmly” to the result of the Korea talks on Monday, Kim said.

By Ricardo Martinez

Ricardo Martinez has been active in the financial markets for around 10 years. In the early days in his career he was a trader and worked as market analyst in different online brokers advising clients on key decisions of trading instruments in foreign exchange and commodity markets. Ricardo is currently working as independent trader with diversified portfolio over different markets. His writing for LearnMarketonline is part of his commitment to share knowledge with traders.