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

Stocks are opening modestly lower on Wall Street, Tuesday, April 11, 2017, led by declines in banks and energy companies.

TOKYO (AP) — Shares were mostly lower Tuesday in Asia amid growing wariness over tensions with North Korea.

Japanese stocks fell to their lowest in more than four months on Wednesday as rising geopolitical tensions curbed risk appetite, with exporters badly hit as the safe-haven yen spiked to a five-month high. France’s CAC 40 gained 0.4 percent to 5,123.01 and Germany’s DAX added 0.4 percent to 12,183.46. Britain’s FTSE 100 gained 0.6 percent to 7,383.

Wall Street’s slow start was compounded by a lack of top tier economic data and as they kept moves tight ahead of the start of first quarter earnings season on Thursday.

Trump overnight tweeted that “North Korea is looking for trouble” and if China is unable to contain its neighbour, then the USA “will solve the problem” on its own. But U.S. missile strikes on a Syrian air base last week were followed by bombings at two Coptic churches in northern Egypt that killed 44 people.

North Korean has warned it is prepared to launch a nuclear attack on the U.S. if provoked and leader Kim Jong Un has continued with missile tests, according to reports. The G-7 powers, meanwhile, want to put more pressure on Russian Federation to stop backing the Syrian government, which they blame for a deadly chemical attack last week.

Gold futures for June delivery gained 0.3 percent to settle at $1,278.10 an ounce at 1:39 p.m. on the Comex in NY, after touching $1,281.80, the highest for a most-active contract since November 10. Oil was steady after rising for a sixth day on Tuesday.

TROUBLED TOSHIBA: Shares of the Japanese electronics maker extended losses, falling more than 2 percent after it raised doubts about its ability to survive as a company.

Oil prices have rallied overnight, putting crude futures on track for their longest winning streak in nine month, as Saudi Arabia is reported to be lobbying OPEC and non-OPEC members to extend last November production cut beyond the H1, 2017.

The Nikkei 225 share average dropped 1.0 per cent to 18,552.61, the lowest closing level since December 7. Hong Kong’s Hang Seng Index was in similar territory, declining by 0.31 percent.

The U.S. dollar turned lower along with Treasury yields and stocks on Wednesday after U.S. President Donald Trump said the dollar is getting too strong and that he would prefer the Federal Reserve keep interest rates low.

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. Global benchmark Brent LCOc1 edged up 13 cents in early trade to $56.36 a barrel, while USA crude CLc1 added 12 cents to $53.52. Brent crude, the standard for worldwide oil prices, added 39 cents to $56.62 a barrel. As reported in a national business daily, the United States aircraft carrier strike group was moving toward the Korean peninsula, days after an American cruise missile strike on Syria, that was widely interpreted as putting Pyongyang on warning over its refusal to abandon its nuclear ambitions. The euro slipped to $1.0603 from $1.0604.