Swiss franc, yen rise as North Korea tensions brew

Swiss franc, yen rise as North Korea tensions brew

Swiss franc, yen rise as North Korea tensions brew

Japan said on Tuesday it was possible that North Korea had already developed nuclear warheads and warned of an acute threat posed by its weapons programmes as Pyongyang's continues missile and nuclear tests in defiance of United Nations sanctions.

Investors have been jittery about North Korea since Tuesday when Trump said any threats from Pyongyang would be "met with fire and fury like the world has never seen".

"Most investors will be completely out of their depth in making any assessment on the (North Korea) situation", said Koon Chow, emerging market FX strategist at fund manager UBP. MSCI's broadest index of Asia-Pacific shares outside Japan closed 1.48 percent lower.

Japanese markets were closed for a holiday but the in-demand yen powered on, hitting an eight-week high of 108.91 yen to the dollar, adding to its biggest weekly gain since May.

LONDON, Aug 11 (Reuters) - World stocks tumbled for a fourth day and were on course for their worst week since November, as the escalating war of words over North Korea drove investors on Friday toward the yen, the Swiss franc and gold.

South Korea's fell 1.7 percent to its lowest since May 24, but its losses for the week are a relatively modest 3.2 percent.

European markets also slid in early trade after Wall Street indices suffered their biggest losses in almost three months Thursday, while the dollar struggled to recover from eight-week lows below 109 yen as investors fled to safe haven assets.

The dollar index fell 0.3 percent, with the euro up 0.36 percent to $1.1812.

US missile makers Raytheon and Lockheed Martin have outperformed Wall Street by nearly 4 percent in recent days.

Equities fall on rising tension between US & North Korea
On the currency markets, the pound was up 0.03% against the dollar at $1.2981 but down 0.23% against the euro at 1.0999 euros. In the eurozone, the Paris CAC 40 dropped nearly 0.7 per cent to 5,081.92 points compared with the closing level on Thursday.

Bond prices came under pressure early in the session and remained stuck in the red throughout the day.

Gold prices were up almost 1% (http://www.marketwatch.com/story/gold-gains-about-1-as-us-north-korea-tensions-grow-2017-08-09) to $1,273.30 an ounce. Brent crude was up 30 cents at $53.00 a barrel.

The recent resilience of data on the United States economy has not dampened the latest climb, despite depressing prices earlier in the week as reports returned high employment figures ahead of further USA inflation information this week. The Nasdaq composite lost 18 points, or 0.3 percent, to 6,352.

Australian shares fell to near three-week lows in a broad-based selloff.

Priceline Group slumped 6.5 percent after issuing a profit forecast that was weaker than analysts were expecting.

A report released by the Labor Department showed a modest uptick in consumer prices in the U.S. in the month of July.

Kohl's stock dropped almost six percent despite better than expected earnings.

Markets saw a tentative recovery in risk appetite in overnight US and early Asian trading, but anxiety mounted again as Asian stocks fell back and London, Frankfurt and Paris dropped 0.5-1.2 percent in Europe.

Shares of Snap (SNAP) are also seeing pre-market weakness after the parent of Snapchat reported a wider than expected second quarter loss on revenues that came in below expectations.

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