Stocks on Wall Street fell as investors remained jittery about North Korea ahead of Wednesday’s Asia trading session.

Tensions on the Korean Peninsula continued to simmer, with a North Korean diplomat threatening that the country was prepared to deliver “gift packages” to the U.S. if the latter continues to put pressure on Pyongyang. South Korea has said further missile tests could be expected from North Korea following its last nuclear test on Sunday.

President Donald Trump contributed to the elevated geopolitical tensions when he tweeted on Tuesday that he would be letting Japan and South Korea purchase a “substantially increased amount” of military equipment from the U.S. Meanwhile, Russian President Vladimir Putin cautioned over increasing “military hysteria” in reaction to developments in the region.

Markets also digested Fed Governor Lael Brainard’s comments on Tuesday that the Federal Reserve had to be “cautious about tightening policy,” given that inflation was below the central bank’s target.

Stocks in the U.S. fell as markets re-opened for trade after the Labor Day holiday. The Dow Jones industrial average tumbled 1.07 percent, or 234.25 points, to close at 21,753.31, the S&P 500 lost 0.75 percent to close at 2,457.85 and the Nasdaq sank 0.93 percent to end at 6,375.57.

Yields of the U.S. Treasurys were also lower. The yield of the 10-year Treasury note stood at 2.06 percent at the end of the U.S. trading day, around its lowest levels since Nov. 10. Bond yields move inversely to their prices.

The dollar fell to a more than one-week low against the yen. The dollar fetched 108.54 yen at 6:45 a.m. HK/SIN, compared to levels around the 109 handle seen earlier this week. The dollar index, which tracks the dollar against a basket of currencies, stood at 92:252, compared to the 92.6 handle seen earlier.

In Asia, futures suggested a slightly lower open for Japanese equities. Nikkei futures traded in Chicago were down 0.26 percent at 19,335 and Osaka futures were off 0.13 percent at 19,360. Those compared to the benchmark index’s previous close of 19,385.81.

Meanwhile, Australian SPI futures were down 0.78 percent at 5,662 compared to the S&P/ASX 200’s last close of 5,706.233.

In corporate news, the sale of Toshiba’s memory chip business returned to the spotlight after Western Digital offered to leave a consortium in talks to buy the unit from Toshiba, Reuters said on Tuesday. Instead, Western Digital would strengthen its position in its existing joint venture with Toshiba, Reuters added.

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

• 9:30 a.m.: Australia second-quarter GDP
• 12:00 p.m. Malaysia July trade