Global stocks slip on concern over North Korean nuclear test

Friday, September 1, 2017, Vol. 41, No. 35

TOKYO (AP) — Global stocks mostly fell on Monday after a nuclear test by North Korea over the weekend raised fears about regional instability and as trading volumes remained thin due to a U.S. holiday.

KEEPING SCORE: France's CAC 40 slipped 0.4 percent to close at 5,103.97 and Germany's DAX lost 0.3 percent to 12,102.21. Britain's FTSE 100 edged down 0.4 percent to 7,411.47. U.S. markets were closed for Labor Day.

NORTH KOREA: North Korea said it successfully tested a hydrogen bomb. U.S. Defense Secretary Jim Mattis responded by saying that the U.S. will answer any threat from the North with a "massive military response — a response both effective and overwhelming." President Donald Trump threatened to halt all trade with countries doing business with North Korea, a warning to China, and faulted South Korea for its "talk of appeasement."

THE QUOTE: "Korean tensions are elevated again," said Chang Wei Liang from the Singapore Treasury Division at Mizuho Bank. "While U.S. Defense Secretary Mattis warned of a 'massive military response' if the U.S. or its allies are threatened, risk-off sentiment this morning is not unduly excessive, largely because markets still do not expect any military escalation in the near-term."

ASIA'S DAY: Japan's benchmark Nikkei 225 edged down 0.9 percent to finish at 19,508.25, while Australia's S&P/ASX 200 lost 0.4 percent to 5,702.00. South Korea's Kospi dipped 1.2 percent to 2,329.65. Hong Kong's Hang Seng slipped 0.9 percent to 27,703.67, but the Shanghai Composite rose 0.4 percent to 3,379.58.

ENERGY: Benchmark U.S. crude gained 18 cents to $47.47 a barrel in electronic trading in New York. It added 6 cents to $47.29 a barrel on Friday. Brent crude, which is used to price international oils, fell 34 cent to $52.41 a barrel in London.

CURRENCIES: The dollar fell to 109.60 yen from 110.04 yen late Friday. The euro rose to $1.1919 from $1.1907.


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