Dollar hits 8-week low vs yen, N.Korea tensions spook investors

Dollar hits 8-week low vs yen, N.Korea tensions spook investors

However, the classic safe-haven asset gold rose again Thursday to around $1,279 an ounce after surging 1.3 percent Wednesday as investors reacted with dismay to the deepening crisis. In Japan, the Nikkei closed in the red ahead of Friday's national holiday, dropping 0.1%.

At the moment stock falls have not been too dramatic - the bluechip index is at a higher level than it was a week ago.

"For now, the North Korea situation bears watching as there's lots of tough talk, but we'll see if it escalates", said Kinahan. Wall Street was poised for further losses at the opening bell, with Dow futures and the broader S&P 500 futures down 0.3 percent.

On Tuesday, U.S. President Donald Trump warned the Asian country about facing "fire and fury" if North Korea delivers more threats against the U.S.

"If the US should target North Korea, it would have to deal with North Korea's nuclear weapons, and there's also the possibility for Russian Federation and China to intervene", Yang said.

The reclusive state raised the stakes further on Thursday with a detailed plan to send a salvo of missiles towards the U.S. territory of Guam.

The benchmark Korea Composite Stock Price Index lost 39.76 points, or 1.69 percent, to 2,319.71.

The so-called fear gauge - the CBOE Volatility Index (VIX), the most widely followed barometer of expected U.S. stock market volatility, hit its highest since November 8, when Mr Trump was elected president.

"The CPI data was very muted and not something which the Federal Reserve is going to be happy to look at", said Think Markets analyst Naeem Aslam.

TSX hits 1-month low on risk aversion, lower oil prices
On Tuesday, August 8, despite that new record high, the market pulled back and closed lower due to decreased risk appetite. Australia's S&P/ASX 200 edged down almost 0.1 percent to 5,760.90, while South Korea's Kospi fell 0.5 percent to 2,357.84.

The pan-European FTSEurofirst 300 index lost 1.19 percent.

The franc wasn't the only beneficiary to the risk-off sentiment sweeping markets.

Another source of support to bullion was data showing US producer prices unexpectedly fell in July, pointing to a further moderation in inflation that could delay a Federal Reserve interest rate increase. They are looking for confirmation that the Fed is sticking with plans for a possible December interest rate hike.

"The market is realizing that economies are doing well enough for both the Fed and the ECB to remove stimulus", Ken Peng, a Hong Kong-based investment strategist at Citi Private Bank, said.

It was not only the threat of conflict with nuclear-ambitious North Korea.

Ongoing global glut concerns lingered in oil markets despite a bigger-than-expected draw in US crude inventories, leaving prices volatile.

The franc jumped 1.4 per cent to 0.9611 francs per euro in early trades.

USA crude oil crude futures CLc1 were little changed at $48.59 per barrel.

South Korea's KOSPI fell 1.7 per cent on Friday to its lowest since May 24, but its losses for the week were a relatively modest 3.2 per cent.

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