Markets in Asia on Monday are expected to react to elevated tensions on the Korean Peninsula after North Korea said it tested a hydrogen bomb over the weekend.

North Korea claimed on Sunday that it had conducted a test of a hydrogen bomb meant to be carried by a long-range missile. The test — which the North called a “perfect success” — was estimated to have an explosive yield of up to 100 kilotons, news agency Yonhap reported a South Korean lawmaker as saying.

President Donald Trump called North Korea’s latest test “hostile and dangerous.” When asked about the possibility of a U.S. military attack in response to the North’s latest actions, Trump told a reporter, “We’ll see.”

The Sunday test came on the back of heightened geopolitical tensions in the region. The North had launched a missile that flew over Japan just a few days prior.

“After a risk positive overnight session on Friday, news on Sunday that North Korea successfully tested a more advanced nuclear weapon has this morning triggered a bid for safe haven currencies (Japanese yen and Swiss franc) while [the] Australian dollar and New Zealand dollar are a little bit softer,” said National Australia Bank Currency Strategist Rodrigo Catril in a Monday note.

“We now probably need to wait for Asia to open to assess the full reaction from the weekend news.”

Against the Japanese currency, the dollar fetched 109.68 yen at 7:13 a.m. HK/SIN, after falling as low as 109.29 yen earlier. That compared to Friday’s close above the 110 handle.

Markets are also to expected to digest weaker-than-expected U.S. employment data released on Friday. U.S. nonfarm payrolls for August showed 156,000 jobs were created, below the 180,000 forecast by economist in a Reuters poll.

Despite the miss, equities in the U.S. closed higher on Friday. The Dow Jones industrial average rose 0.18 percent, or 39.46 points, to close at 21,987.56, the S&P 500 gained 0.2 percent, or 4.90 points, to end at 2,476.55 and the Nasdaq added 0.1 percent to close at a record 6,435.33.

In Asia, the Friday lead from Wall Street will likely be overshadowed by the North Korea news at the market open. Futures implied a lower open for Japanese equities. Nikkei futures traded in Chicago were down 0.72 percent at 19,550 compared to the benchmark index’s previous close of 19,691.47.

Down Under, SPI futures were mostly flat, trading just 0.01 percent lower at 5,725 compared to the S&P/ASX 200’s last close of 5,724.592.

Malaysia and Vietnam markets are closed for public holidays.

Meanwhile, U.S. markets will be closed Monday for Labor Day.

In corporate news, Malaysia’s Petroliam Nasional Berhad, or Petronas, said on Saturday it was not interested in acquiring a majority stake in Dae Woo Engineering & Construction, Reuters reported. South Korean media had reported that Petronas was interested in the deal on Friday.

On the energy front, the Brent contract for November delivery slid 11 cents to settle at $52.75 a barrel, according to Reuters. U.S. West Texas Intermediate added 6 cents to settle at $47.29 a barrel.

U.S. gasoline prices declined 2 percent on Friday after climbing above $2 a gallon last week, Reuters said.

Meanwhile, the dollar index, which tracks the greenback against a basket of six major currencies, stood at 92.671 at 7:15 a.m. HK/SIN.

The economic calendar for Monday is fairly light, with the only notable data release being Indonesia August CPI due at 12:00 p.m. HK/SIN.

— CNBC’s Leslie Shaffer contributed to this report.