Political risks: Trade wars, NAFTA and N.Korea are all up

The week is starting out in earlier Asia positive, with weekend headlines in the Wall Street Journal that is citing US officials saying that Kim Jong Un is willing to discuss the denuclearization of the Korean Peninsula.  USD/JPY rallied 10 pips up to test the 107 handle, making a high of 106.99.

Key notes:

• Pyongyang has indicated that progress toward denuclearization should proceed in phases that are synchronized with diplomatic and economic concessions from the U.S. side.
• U.S. officials didn't say when and how that assurance was delivered.

Meanwhile, on matters relating to trade wars and NAFTA, the week ahead should be eventful in this regard considering President Xi's address on Tuesday at the Boao Forum, where markets will expect statements related to the recently proposed tariffs from both sides, according to people familiar with the matter, as reported by Reuters and Bloomberg.