Asian stocks slip, yen and gold rise as global risks weigh

16 April, 2017, 00:54 | Author: Glen Fletcher

The 225-issue Nikkei Stock Average shed 212.17 points, or 1.14 percent, from Wednesday to 18,340.44, its lowest intraday level since early December.

TOKYO (AP) - Stocks were mixed Tuesday and the price of gold rose as investors monitored geopolitical risks - from North Korea's rumblings over the U.S.to major powers' plan to put pressure on Russian Federation over the Syrian war. Stocks are opening modestly higher on Wall Street, Monday, April 10, 2017, led by gains in energy and industrial companies.

France's CAC 40 lost 0.5 percent in early trading to 5,108.27, while Germany's DAX inched down 0.1 percent to 12,211.15.

The Bank of Japan said that producer prices were up 0.2 percent on month in March - shy of expectations for a gain of 0.3 percent, which would have been unchanged from February following an upward revision from 0.2 percent.

Tension has escalated sharply on the Korean peninsula amid concerns that reclusive North Korea may soon conduct a sixth nuclear test and after Washington said at the weekend it was diverting U.S. Navy strike group Carl Vinson from port calls to Australia toward the Korean peninsula as a show of force.

North Korea said there could be "catastrophic consequences" after the USA ordered the USS Carl Vinson aircraft carrier and its battle group to waters off the Korean Peninsula.

QUOTEWORTHY: Jeffrey Halley, senior market analyst at OANDA, noted that investors are likely to remain cautious as a long weekend approaches.

The yen gained more than 1 percent on Tuesday, its biggest one-day rise in three months against the dollar, with the greenback falling below 110 yen for the first time since mid-November. Hong Kong's Hang Seng sank 0.7 percent to 24,088.46, while the Shanghai Composite index rebounded to close 0.6 percent higher at 3,288.97.

The Federal Reserve's plans to raise US interest rates gradually are aimed at sustaining full employment and near-2-percent inflation without letting the economy overheat, Fed Chair Janet Yellen said on Monday, reinforcing the central bank's message and offering no fresh clues on the policy outlook.

MSCI's broadest index of Asia-Pacific shares outside Japan was near flat and futures pointed to a slightly firmer opening for the main European bourses.

CURRENCIES: The dollar fell to a five-month low against the yen as investors seeking security amid global uncertainty piled into the Japanese currency, which is traditionally seen as a haven. The euro rose to $1.0608 from $1.0588.

Investors often buy more gold in volatile times, believing the precious metal is better at retaining its value compared to the stock market.

WALL STREET: Industrial, materials and energy companies led USA stocks modestly lower before markets were due to be closed Friday for a holiday.

The New Zealand dollar was trading at 92.72 Australian cents from A92.69c.It traded at 65.57 euro cents from 65.64c and fell to 4.7901 Chinese yuan from 4.7992 yuan. It added 54 cents to $52.24 a barrel late Friday in NY. Brent crude, the standard for worldwide oil prices, was up 52 cents, or 0.9 percent, at $55.76 a barrel in London.

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