Geopolitical tensions looked set to remain in the spotlight on Tuesday after stocks stumbled and investors turned to safe haven assets on the back of North Korea’s most recent nuclear test.

The U.S. on Monday called for the “strongest possible” sanctions to be imposed on North Korea a day after North Korea said it had tested a hydrogen bomb. President Donald Trump also spoke to South Korean President Moon Jae-in on the phone, during which he gave “conceptual approval” for South Korea to purchase weapons from the U.S., Reuters said.

South Korea also said on Monday that the North was planning to launch an intercontinental ballistic missile, according to Yonhap.

Gold edged down after climbing to its strongest levels in almost a year overnight. Spot gold stood at $1,333.26 an ounce at 7:05 a.m. HK/SIN after climbing as high as $1,336.79 on Monday. U.S. gold futures were 0.65 percent higher at $1,339.

Meanwhile, the yen was largely flat, trading at 109.70 yen to the dollar compared to an overnight high of 109.29 yen to the dollar.

Stocks in Asia had closed down on Monday, with South Korea’s Kospi falling 1.19 percent to close at 2,329.65. The Nikkei 225 tumbled 0.93 percent, or 183.22 points, to close at 19,508.25. European markets also declined, with the pan-European Stoxx 600 erasing 0.52 percent by the market close.

Despite the move to safety, analysts said market reaction on Monday was relatively muted.

“Risk off sentiment has hardly become evident. Moves back to safe haven or risk off currencies, [such as] the Japanese yen and the Swiss franc, have been very much at the margin,” National Australia Bank Director of Economics David de Garis said in a note.

In Asia Pacific equities, Nikkei futures pointed to mostly flat open for Japanese equities. Nikkei futures traded in Chicago edged up 0.01 percent to 19,510 and Osaka futures were 0.11 percent higher at 19,530. The Nikkei 225 closed at 19,508.25 on Monday.

Australian SPI futures were off 0.19 percent at 5,691 compared to the benchmark index’s previous close of 5,702.002.

U.S. markets were closed on Monday for Labor Day.

On the energy front, U.S. crude rose slightly overnight as demand picked up and U.S. refineries started to resume operations. Meanwhile, gasoline futures fell 3.28 percent to $1.6906 a gallon on Monday, close to levels seen before Hurricane Harvey hit.

Ahead, investors are expected to focus on China Caixin services PMI due later in the morning after the official services reading came in at its lowest level since May 2016. Both Caixin and official manufacturing PMI for August beat expectations.

Here’s the economic calendar for Tuesday (all times in HK/SIN):

• 9:30 a.m.: Australia second-quarter current acccount
• 9:45 a.m.: China Caixin August services PMI
• 12:30 p.m.: Reserve Bank of Australia decision
• 4:00 p.m.: Taiwan August CPI