Asian markets are set to climb after President Donald Trump’s measured response to North Korean missile launches. The yen was down 1 percent since Tuesday’s Tokyo close while gold made further headway above $1,300 an ounce.
Equity index futures pointed to higher opens in Japan, South Korea and Australia after U.S. stocks rebounded from losses initially sparked when Kim Jong Un’s regime fired a missile over Japan. The yen rallied on Tuesday as safe havens advanced, only to more than give up those gains as investors speculated the event won’t escalate. Yields on benchmark 10-year Treasuries fell to the lowest this year and the dollar touched the weakest level since January 2015 before recovering. Gold reached a 2017 high. Gasoline advanced for a sixth day as Tropical Storm Harvey picked up strength again.
Asian markets were roiled on Tuesday after North Korea fired a ballistic missile over Japan in an act the latter called an “unprecedented, grave and serious threat.” Trump said the U.S. will consider “all options” in its response. The missile seems likely to reignite the simmering tension between North Korea and the U.S. just days after Secretary of State Rex Tillerson praised the nation for its “restraint.”
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Among other key events looming this week:
- Inflation data from the euro zone’s largest economies this week may show prices nudged up in August.
- Japan releases figures for the retail industry on Wednesday.
- Australia is due to publish data on Wednesday detailing construction work done.
- The U.S. updates second-quarter GDP and core price data on Wednesday, and reports on August payrolls on Friday.
And here are the main moves in markets:
- Futures on the Nikkei 225 Stock Average were up as much as 0.5 percent at 7:02 a.m. Tokyo time, while those on the Kospi index rose about 0.3 percent. Contracts on Australia’s main gauge gained about 0.5 percent.
- Contracts on the S&P 500 Index were flat in early Asian trading. The cash gauge finished Tuesday 0.1 percent higher.
- The yen was up 0.1 percent at 109.60 per dollar after dropping 0.4 percent.
- The Bloomberg Dollar Spot Index closed Tuesday 0.2 percent higher after dropping to the lowest in more than two years.
- The euro was little changed at $1.1970, after touching the strongest in almost three years.
- The yield on 10-year Treasuries declined three basis points to 2.13 percent, after dropping as low as 2.08 percent, the least in 10 months.
- West Texas Intermediate crude fell 0.3 percent to $46.28 a barrel.
- Gold added 0.1 percent to $1,310.60 an ounce after reaching the strongest level in 11 months.
- Gasoline for September delivery rose 2.7 percent to $1.8311 a gallon and is up 10 percent this week.