Homepage / Asia / US-North Korea tensions weigh on Asia markets as Trump doubles down on rhetoric
US says joint South Korea war games not on the negotiating table Air Berlin aims for asset sales to at least two buyers by end-Sept – CEO Here's how bike-sharing can help Hong Kong: Gobee.bike CEO HBO social media accounts hacked in another cyber-attack after 'Game of Thrones' scripts stolen Australia's Hanson wears burqa to parliament in bid to ban them Apple's Tim Cook 'disagrees' with Donald Trump's take on neo-Nazi violence in Charlottesville Beijing to Chinese companies: Stop using weird names Beijing has a $12 billion plan to revamp a state firm. It might not matter Racist video from China's official press agency mocks Indians Asia has been the world's economic miracle. Three countries are threatening that Trump promised to seek Seoul's approval before acting against North Korea: South Korea president Forget North Korea — here's the Asia flashpoint that really has analysts worried Global trade has been booming — but that may be about to fall apart Steve Bannon reportedly says the US is already in an 'economic war' with China This is what Internet companies are doing to exile white supremacists Asian shares to digest Fed minutes as political turmoil weighs on the dollar Cramer Remix: These stocks are in the perfect sweet spot of the market Cramer finds 3 retailers that can win in this new Amazon-plagued environment Google buys a start-up whose apps change your hair color in selfies High-profile investors, including Laurene Powell Jobs, just put $80 million into Color Genomics Facebook shut down an internal pro-Trump discussion group because of harassment, says report Cramer: Here's why the market is still sky-high despite Trump's troubles Here's how the Fed's decisions will begin impacting the market How companies like Google and Facebook are standing up to neo-Nazis and other hate groups Facebook CEO Mark Zuckerberg: It should be obvious that neo-Nazis are wrong Why it's going to be tough to get a rally in retail this year Sell-off in generic drugmakers a buying opportunity for this one, Citi says An inside look at Ford’s $1 billion bet on Argo A.I. Cisco slides after revenue beat Traders are getting excited about Alibaba earnings Trump's attack on Amazon has some basis in truth Self-made millionaire Gary Vaynerchuk: Don't raise money—make money A new $702 Nokia high-end smartphone unveiled ahead of Apple, Samsung launches The judge in the Uber-Waymo case suggests Uber lawyers 'misled the court' Josh Brown: Here’s why the market is mostly ignoring the Trump chaos Why IBM sends its best employees abroad for four weeks Two hobbyists built an electric car from spare parts. Now they're going after a record set by Tesla Shipping company Maersk says a huge cyberattack could cost it up to $300 million A start-up is suggesting a fix to the health-care morass Bill Ackman is getting worried about geopolitical risk, buys protection against market drop This state is the robot capital of America Google Home one-ups Amazon Echo, now lets you call phones Top CEOs jump from Trump, disband strategic council of corporate giants The energy sector has tumbled 16 percent this year — is it time to buy? How Jeff Bezos' 'two pizza rule' can help you hold more productive meetings Here's who's in and out of Trump's economic advisory councils after Charlottesville violence Chinese takeovers of US companies plummet this year amid tough Trump talk The man helping companies like Wawa and McDonald's make winning decisions using big data Cash is dead and drones deliver groceries: This is the future, according to Blockchain CEO This market rally is on ‘borrowed time’: Strategist Cramer: The market is 'completely divorced' from Trump SunTrust predicts Snap will plunge more than 20% on Facebook competition The Essential phone — backed by Amazon — will reportedly start shipping next week Billionaire Richard Branson weighs in on the idea of free cash handouts Your first trade for Wednesday, August 16 Another ‘Game of Thrones’ episode has leaked online Goldman has a new favorite biotech because of potential Alzheimer's blockbuster Google’s spacecraft challenge offers finalists an extra $4.75m as it extends mission deadline The stock that’s surged 150 percent this year – and could rise even higher Tencent results blow past forecasts on strength in games, WeChat Apple is bringing a billion-dollar checkbook to Hollywood, and wants to buy 10 TV shows UK defends ‘frictionless’ post-Brexit Irish border as mutually beneficial Atlanta Fed president: Great Recession caused people to distrust long-term investments Russian ex-minister accuses Putin lieutenant of framing him Early movers: TGT, UNH, MYL, FB, AMZN, GOOGL, WFC, URBN & more Trump rips Amazon, says it causes 'great damage to tax paying retailers'; shares drop Superior dividends and great valuations: why investors should consider oil stocks Donald Trump's 'mafia connections' blocked his bid to open Sydney casino 30 years ago Fog lifting for Maersk as CEO gives upbeat shipping forecast UK unemployment falls again to lowest since 1975, wage growth still lacklustre ECB's Draghi will not deliver fresh policy steer at Jackson Hole: Sources Our top competitor is piracy, not TV, says Netflix competitor Uber investor Shervin Pishevar claims Benchmark wants to remove Arianna Huffington from the board First far-right party set to enter German parliament since 1945 claims Merkel’s days are numbered China has got to fix its debt problem, the IMF says India, China soldiers involved in border altercation: Indian sources Britain is now seeking a Brexit without borders for Northern Ireland Dollar climbs on stronger-than-expected US retail sales as Asia markets await earnings The DOJ is demanding IDs of people who visited anti-Trump site, but web host won't comply Cramer Remix: The one stock to buy into any real weakness Companies are buying bitcoin to pay off hackers, says top cybersecurity CEO Cramer: Why the Yelp-GrubHub partnership is a match made in heaven These slides from Google's diversity training program help explain why fired engineer felt silenced Cramer's charts uncover which wild moves in semiconductor stocks are telling the truth This was the alt-right’s favorite chat app. Then came Charlottesville. Cramer uses fantasy football to teach investors the cardinal rules of diversification Uber’s head of its developer platform, Chris Saad, is leaving the company Energy stocks may be a drag on the bull market this fall The market's fear gauge could quintuple by Halloween, strategist warns Airlines want tighter control of alcohol sales in British airports Apple has a surprising new growth engine Here’s why one technical trader is picking bitcoin over gold Obama's response to Charlottesville is about to be the most popular tweet of all time David Tepper, manager of $17 billion, loves tech stocks; here are his favorites A 20-year VC explains what really happens in the boardrooms of venture-backed companies Home Depot shares drop as Wall Street fears it may no longer be 'Amazon-proof' Amazon faces a tax fight in South Carolina that could change how online sellers do business Unsealed texts show Travis Kalanick was cocky about China before Uber got creamed there Here's why venture capitalists are so grumpy these days GoDaddy CEO: We booted the neo-Nazi Daily Stormer website for inciting violence

Asia

US-North Korea tensions weigh on Asia markets as Trump doubles down on rhetoric

U.S.-North Korea geopolitical tensions came to the fore once again as Asian stocks remained pressured and demand for safe haven assets remained intact in Friday trade.

South Korea’s benchmark Kospi index fell 1.69 percent, driven by losses in tech and retail stocks. Samsung Electronics and SK Hynix sank 2.61 percent and 4.04 percent respectively, while department store operator Shinsegae tumbled 8.87 percent.

In Australia, the S&P/ASX 200 was down 1.13 percent, with the index’s move lower driven by broad-based losses across most sub-indexes although gold stocks climbed. The heavily-weighted financials sub-index was 1.40 percent lower.

Markets in greater China mirrored the slide in global equities. Hong Kong’s Hang Seng Index was down 1.22 percent. On the mainland, the Shanghai Composite declined 0.68 percent and the Shenzhen Composite shed 0.521 percent.

Japan markets are closed for the Mountain Day holiday.

After previously warning of “fire and fury” if North Korea persisted in threatening the U.S., President Donald Trump said Thursday his statement “wasn’t tough enough.” While he did not comment on what he meant by that statement, Trump said that North Korea should be “very, very nervous” if it “(did) anything in terms of even thinking about an attack.”

Gold prices eased slightly after rising to their highest levels in more than two months on safe haven demand. Spot gold traded traded as high as $1,288.92 an ounce on Friday, compared to levels around the $1,257 mark earlier this week. The yellow metal traded at $1,285.64 an ounce at 9:53 a.m. HK/SIN, a tad below the $1,285 level seen Thursday.

Demand for the Japanese yen remained supported, with the dollar extending losses made in the Thursday session. The Japanese currency last traded at 109.07 yen to the dollar, compared to levels around the 110 handle seen earlier in the week.

Yields of the benchmark 10-year U.S. Treasury fell to a one-and-a-half month low of around 2.20 percent in the Thursday session. Ten-year yields were around 2.25 percent earlier in the week.

In corporate news, Noble Group announced a net loss of $1.9 billion in the first half of 2017. Noble has been forced to shuffle management, sell down assets and slash costs to boost liquidity. Despite the losses, Noble shares rose 17.14 percent.

Also of note, Japan’s SoftBank Group has invested almost $2.5 billion in India-based e-commerce player Flipkart. The funding will come from SoftBank’s Vision Fund in the form of share purchases, Reuters reported.

Meanwhile, the dollar index, which tracks the dollar against a basket of six major currencies, slipped on the back of weaker-than-expected U.S. producer prices. The index stood at 93.371 at 9:38 a.m. HK/SIN, below levels around the 93.4 handle seen in the previous session. Ahead, the release of U.S. July CPI due during the U.S. trading day is expected to influence the direction of the dollar.

“The drop in PPI signals potential weakness in CPI, but even if consumer prices tick higher like economist[s] anticipate, it won’t be enough because the Federal Reserve doesn’t feel good about inflation,” BK Asset Management Managing Director Kathy Lien said in a note.

Heightened geopolitical tensions between the U.S. and North Korea also meant that the dollar/yen pair would have a difficult time responding to positive data, Lien added.

In other currency market news, the Philippine peso fell to an 11-year low against the dollar, according to Reuters. The Philippine currency traded at 51.069 peso to the dollar at 9:40 a.m. HK/SIN, breaching the 50 level seen since mid-June.

Oil prices steadied after slumping more than 1.5 percent overnight on oversupply concerns and the move lower on Wall Street, Reuters reported. Brent crude edged down by 0.13 percent to trade at $51.82 a barrel and U.S. crude shed 0.06 percent to trade at $48.56.

In economic news, second-quarter Singapore GDP growth was revised upwards to 2.2 percent compared to the previous quarter, above an earlier estimate of 0.4 percent growth. The figure reflected a 2.9 percent rise compared to one year ago. The beat in GDP growth gave the Singapore dollar a slight boost: The currency traded at S$1.3623 to the dollar at 8:31 a.m. HK/SIN compared to levels around S$1.3634 seen before the release.

The economic calendar for Asia is fairly light (all times in HK/SIN):

  • 1:00 p.m.: Singapore June retail sales
  • 4:30 p.m.: Hong Kong second-quarter GDP

Markets stateside tumbled on the back of the U.S.-North Korea geopolitical tensions, with the Dow Jones industrial average falling 0.93 percent to close at 21,844.01. The Nasdaq dropped 2.13 percent, or 135.46 points, to finish at 6,216.87.

— CNBC’s Leslie Shaffer contributed to this report.

Source: cnbc china
US-North Korea tensions weigh on Asia markets as Trump doubles down on rhetoric

Comments are closed.