Global stocks slide as US-N. Korea nuclear tensions rise

Watch our discussion on investment

Watch our discussion on investment

Analysts said the war of words between Washington and Pyongyang provided impetus for this week's losses.

"The data confirms the Fed will have a wait-and-see attitude", said King Lip, chief investment officer at Baker Avenue Asset Management in San Francisco.

Lower-than-expected CPI data will be bullish for gold because it will reduce the chances of a Fed rate hike later this year.

MARKETS OVERSEAS: Major indexes in Europe were mixed. "What's happened in North Korea is enough to do that".

His comments came in response to North Korea's threat to fire ballistic missiles toward the US territory of Guam, which is home to USA strategic bombers, a naval station and other strategic assets.

TOKYO: Asian equity markets extended a global slide on Friday as tensions ramped up between the United States and North Korea, sending investors fleeing to less risky assets such the yen and the Swiss franc. European stocks were facing the worst week in nine months (http://www.marketwatch.com/story/european-stocks-face-worst-week-in-9-months-on-us-north-korea-tensions-2017-08-11) on U.S. The Nasdaq composite lost 40 points, or 0.6 percent, to 6,329.

An index of 15 gold miners tracked by Bloomberg Intelligence climbed 1.1 percent, led by Toronto-based Yamana Gold Inc. MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.57 percent lower, while Japan's Nikkei percent.

South Korea's KOSPI fell 1.7 percent on Friday to its lowest since May 24, but its losses for the week were a relatively modest 3.2 percent.

"Pretty remarkable, perhaps even extraordinary, considering", said Tim Ash, strategist at fund manager BlueBay.

Wall Street's widely followed measure of market anxiety, the CBOE Volatility index, was up 0.79 points at 16.77 on Friday, its highest since November.

Mr. Trump's remarks on Tuesday that North Korea would face "fire and fury like the world has never seen" pushed Wall Street lower on Tuesday and drove up the VIX "fear gauge" of expected volatility on the S&P 500 higher.

The euro dipped 0.1 per cent to $1.1733 but the single European currency has been slipping this week against the dollar, having hit a more than 2 1/2-year high of $1.1892 on August 2. Japan was closed on a public holiday.

South Korea's won dropped 0.9 percent against the USA dollar to its lowest close since July 13. Yesterday, Federal Reserve Bank of New York President William Dudley cautioned that "it's going to take some time" for headline inflation to return to the central bank's 2 percent target.

The dollar index fell 0.3 percent, with the euro up 0.36 percent to $1.1812.

Ryu Yong-seok, a market analyst at KB Securities, said tensions between North Korea and the United States are a negative factor in the local stock markets that dragged down the index.

Bond prices rose. The yield on the 10-year Treasury note slipped to 2.25 percent from 2.26 percent late Tuesday.

Gold hovered near a two-month high, benefiting from the U.S. "You're less than 2 percent off the high for the S&P heading into a weekend where uncertainty with North Korea still lingers", said Lerner.

The price of gold also surged for the second day in a row as the December bullion contract advanced $10.80 U.S.to $1,290.10 U.S.an ounce.

The U.S. equity market is hovering near record levels and volume has been tepid following the onset of summer.

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