Dollar, others slump over North Korea’s nuclear crisis

Dollar, others slump over North Korea’s nuclear crisis

The US Dollar slumped to its lowest close for almost three months Wednesday, leading an Asia-wide sell-off sparked by President Donald Trump’s apocalyptic warning over North Korea’s weapons programme.

Escalating tensions around Pyongyang’s nuclear ambitions sent a shiver through markets worldwide and pushed the dollar to below 109.7 yen in afternoon forex trade to an eight-week low against the safe haven currency, piling more pressure on Japanese stocks.

Tensions spiked yet further when North Korean state media later said Pyongyang was considering strikes near US military installations in Guam.

Tokyo’s blue-chip index tumbled 1.3 percent to its lowest close since late May after the Dow’s winning streak of nine straight records ended following Trump’s sharp rhetoric of “fire and fury”, with the main European bourses also opening lower Wednesday.

Hong Kong and Shanghai followed Tokyo into the red, as China factory gate inflation came in slightly below forecast amid warnings from experts of a further slowdown in the world’s second-largest economy.

Stocks ended more than one percent down in Seoul while the won slumped to a three-week low against the dollar as the US president and South Korea’s volatile neighbour dramatically ramped up their war of words.

But analysts said equities had also fallen as investors took profits.“North Korea is being used as a reason to sell Japanese stocks, just as it was used yesterday in the US,” said Soichiro Monji from Daiwa SB Investments in Tokyo.

US equities had been on track for a 10th-straight record session Tuesday and the dollar was initially up after the JOLTS survey showed job openings hit a record in the US last month.

Greg McKenna, an analyst at AxiTrader, said the data could bolster the Federal Reserve’s plan to start winding in its multi-trillion-dollar bond holdings balance sheet, expected to be announced next month.

The positive data also bolstered the greenback against the euro and the pound Wednesday.

Sydney was a rare bright spot in Asia-Pacific with stocks closing 0.4 percent up as Australia’s biggest bank posted record annual profits.

The Commonwealth Bank of Australia’s profits are closely watched and the results provide a guidance on the health of the country’s economy as it transitions away from a dependence on mining.

In commodities trading, US crude oil was wallowing around $49 to the barrel amid speculation that a predicted gain in American output will offset OPEC-led efforts to trim a global glut.

aljazirah adverts


follow us on twitter @aljazirahnewsng
Like us on Facebook @aljazirahnewsng

Share This:

Related Posts

Pastor quits Trump’s evangelical advisory board, says ‘Presi... New York City megachurch pastor, Mr. A.R. Bernard, became the first religious leader to step down from President Trump’s evangelical advisory board. He also announced his resignation via the Twitter. Bernard announced on Twitter Friday that “it became obvious that there was a deepening conflic...
Suspected Nigerian drug trafficker jumps to death in India Suspected Nigerian drug trafficker jumped to his death off the fourth floor of a building in southern New Delhi,India yesterday while trying to escape police arrest. Forty-year old Cyprian Ama Ogbonnaya had been trailed to the building by the police after receiving...
Osinbajo redeploys 9 permanent secretaries Acting President Yemi Osinbajo, has approved the deployment of nine federal permanent secretaries to ministries and departments. The exercise followed the posting of 15 permanent secretaries earlier in the week. The latest development was conveyed in a circular issued on Friday by the Head of ...
I’m “President in-waiting”, says Fayose Ekiti State Governor Peter Ayodele Fayose is famous for his controversies. On Saturday, ahead of President Muhammed Buhari’s arrival from London,  Fayode declared himself as Nigeria’s president in-waiting. He spoke at the Jolly Nyame Stadium, Jalingo –the Taraba State capital during the funeral ser...
BREAKING: President Buhari finally arrives Nigeria after Nig... By Gbenga Odunsi, Abuja President Buhari has finally arrived Nigeria after spending 103 days on a medical trip in London. Buhari's plane landed at the Nnamdi Azikiwe International Airport, Abuja at about 4:35 pm on Saturday afternoon. Dozens of state officials arrived the airport hours earl...
Resume or Resign: Presidential jet finally departs for Niger... A video of Nigeria’s presidential jet, the Eagle One, taking off from London, UK with President Muhammadu Buhari believed to be on board, has emerged online. The clip was posted on @APCUKingdom’s Twitter account on Saturday morning, as soon as the President’s spokesman, Femi Adesina, confirmed he...
FEATURE: Quality education for children in IDPs camps By Mariam Sanni, Abuja Since 2009, Boko Haram have abducted more than 2000 women and girls. Over 27 million children are estimated to lack access to education, many are being used for suicide bombings, as sex slaves and countless other vices. For these children, not only is their educational d...
Buhari back today, to address Nigerians on Monday The presidency has announced that President Muhammadu Buhari will be back to Nigeria today, Saturday. According to a NAN reports quoting Presidential spokesman, Femi Adesina, Buhari will be back today after about 106 days of healthcare exit in London and is expected to address the country in a na...
IPOB withdraws threat to stop Anambra election The Indigenous People of Biafra (IPOB) has withdrawn its threat to stop the conduct of the November 18 governorship election in Anambra State. The decision was reached after a meeting organised by a non-governmental organisation, the Ala-Igbo International Foundation with the leader of IPOB, Nnam...
Another doctor tests positive to Lassa fever in Lagos One new case of Lassa Fever was identified Friday, from among the doctors that first had close contact with the index case of one of the patients who died of the disease in Lagos University Teaching Hospital (LUTH), last week. Lagos has now recorded six cases of Lassa fever with this new case. Pro...
Police put “Red Alert” on S.African borders to ensure Grace ... Police have put a “red alert” on South Africa’s borders to prevent any attempt by Zimbabwean first lady Grace Mugabe, who is accused of assaulting a model in a Johannesburg hotel, to flee the country. Grace Mugabe Wife Of Zimbabwean president Her husband, Zimbabwean President Robert Mugabe, has ...
Aso Rock clinic ‘does not’ have paracetamol, cot... This might give you some headache: the clinic at Nigeria’s seat of power does not have the commonest of medications, paracetamol, TheCable has learnt. And cotton wool? The patient has to buy from outside. Syringes? Not available. X-ray? Sorry, the machine is out of order. Ambulance? Well, if the ...
APC appeals to INEC to conduct credible by-election in Gombe All Progressives Congress (APC) Gombe State Chapter, has appealed to the Independent National Electoral  Commission (INEC) to conduct free, fair and credible by-election in Dukku North Constituency. The election is billed for Aug. 19 The interim chairman of the party in the state, Alhaji I...