Published: Sun, August 13, 2017
Money | By Armando Alvarado

Asian Stocks Sink Most This Year on US-North Korea Rhetoric


The Dollar weakened against a basket of major currencies on Thursday, after U.S producer prices declined the most in 11 months - falling 0.1% in July, while unemployment claims rose last week.

"I'll tell you why, and they should be very nervous".

Russian Federation responded directly to the mounting war of words between the USA and North Korea Friday, with Foreign Minister Sergei Lavrov saying that the wiser and stronger will make the first move to deescalate tensions.

The Dow Jones Industrial Average (.DJI) fell 204.69 points, or 0.93 percent, to close at 21,844.01, the S&P 500 (.SPX) lost 35.81 points, or 1.45 percent, to 2,438.21 and the Nasdaq Composite (.IXIC) dropped 135.46 points, or 2.13 percent, to 6,216.87.

FIRE AND FURY: Keeping up his tough talk, Trump told reporters that North Korean leader Kim Jong Un's government should "get their act together" or face extraordinary trouble, and suggested his earlier threat to unleash "fire and fury" on North Korea was too mild.

The Korean won weakened significantly again and almost all emerging Asian currencies were soft on Thursday amid simmering tensions between North Korea and the United States.

"Historically, the market impact from North Korea's nuclear provocations has been limited", James Cheo, Investment strategist at Bank of Singapore wrote in a note on Friday.

"U.S. markets had previously been becalmed amidst the Goldilocks scenario of strong profit growth, low interest rates and full valuations".

The yen tends to benefit during times of geopolitical or financial stress as Japan is the world's biggest creditor nation and there is an assumption that Japanese investors there will repatriate funds should a crisis materialise.

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What we had was midfielders, wingers, scoring, central defenders scoring goals at set pieces. He added: "I think we played everything so we don't lose this game".

German bond yields fell, gold and the Japanese yen surged and the leveraged bets on higher yielding currencies such as the Australian dollar took a beating.

Possibly due to the lack of appetite for risk in the market, the euro suffered on Thursday, down slightly against the dollar by 0.09% at 1.1749, slipping towards a two week low.

U.S. Treasury yields US10YT=RR fell to as low as 2.197 percent, their lowest level since June 28, overnight.

Damage for the week: The days of verbal sparring between Washington and Pyongyang looks set to bruise weekly performances for the major USA indexes.

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

Emerging market stocks lost 1.28 percent.

Crude oil prices tumbled on the back of the selloff on Wall Street and lingering concerns over global oversupply. It is on track for a weekly loss of 2 percent.

Spot gold added 0.4 percent to $1,265.18 an ounce, pulling away from the previous session's two-week lows.

Global benchmark Brent LCOc1 was marginally lower at $51.88, after Thursday's 1.5 percent drop.

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