U.S. President Donald Trump sits for a meeting in the White House. (Photographer: Kevin Dietsch/Pool via Bloomberg)

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U.S. President Donald Trump officially scrapped the Iran nuclear deal and reimposed sanctions. Chinese, South Korean and Japanese leaders meet in Tokyo, and U.S. Secretary of State Mike Pompeo is landing in North Korea. Here are some of the things people in markets are talking about.

Trump Ditches Iran Deal

Trump said the U.S. will withdraw from the landmark 2015 accord to curb Iran’s nuclear program and that he would reinstate financial sanctions on the Islamic Republic, casting the Mideast into a new period of uncertainty. He called the accord a “one-sided deal that should have never ever been made.” (Here’s what’s at stake in the withdrawal.) Meanwhile, North Korean leader Kim Jong Un was watching the decision closely, with potential repercussions for his upcoming summit with Trump, according to China’s former ambassador to Pyongyang.

Oil Whipsawed, Treasury Yields Climb

WTI crude took a wild ride Tuesday amid conflicting reports in the runup to Trump’s announcement. Futures pared losses after the president confirmed the U.S. would pull out. The dollar rallied and Treasury yields pushed higher after JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon warned that 4 percent interest rates may be coming. The dollar continued its march higher as U.S. stocks fell.

Xi Meets With Kim

Over the past two days, Chinese President Xi Jinping has been meeting with Kim in China’s port city of Dalian, the second meeting between top officials of China and North Korea in two months. The summit came after Kim’s surprise two-day visit to Beijing in late March, his first known trip abroad since taking power in 2011. Trump said Tuesday that Secretary of State Mike Pompeo is en route to North Korea to prepare for talks with Kim and discuss the possible release of American prisoners.

Xi Talks Trade With Trump

Xi then spoke with Trump about North Korea and the “importance of continued implementation of sanctions” until Kim dismantles his nuclear program. The two leaders then turned to the U.S-China trade relationship while Xi’s top economic adviser plans additional talks in Washington. But in Geneva, Chinese and U.S. ambassadors to the World Trade Organization clashed over Trump’s proposed tariffs on $150 billion of Chinese goods. Washington criticized China’s vow of retaliation, with U.S. officials saying Beijing’s exhortations against protectionism have “entered the realm of ‘Alice in Wonderland.’”

Coming Up ...

Markets in Asia will likely take the morning to digest Trump’s Iran decision. Earnings will be in focus, with Toyota Motor Corp., SoftBank and Mitsubishi Motors all set to report. Japanese Prime Minister Shinzo Abe will welcome Chinese Premier Li Keqiang and South Korean President Moon Jae-in for the first trilateral summit in seven years, meant to pave the way for Abe to visit China.

What we’ve been reading

This is what’s caught our eye over the last 24 hours.

To contact the author of this story: Libby McGowan in New York at lsallaberry@bloomberg.net.

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