Published: Thu, April 13, 2017
Electronics | By Jesus Weaver

Asian shares mostly lower as North Korean tensions simmer

Asian shares mostly lower as North Korean tensions simmer

According to analysts, geopolitics are now the focus of the government and the markets with a number of Australian mining stocks rising by around 2% on Wednesday as Gold prices rose 1.6% to nearly $1,280 per troy ounce.

KEEPING SCORE: Germany's DAX edged 0.1 percent lower to 12,194 and the CAC 40 of France was 0.2 percent higher at 5,116.

June gold GCM7, +0.84% rose $3.90, or 0.3%, to settle at $1,278.10 an ounce, with prices marking their highest finish since November 7, according to FactSet data. The Standard & Poor's 500 index gained 0.1 percent to 2,357.16 and the Dow Jones industrial average was steady at 20,658.02.

GLOBAL GLOOM: Investors are cautious as world events this week complicate the investment outlook.

On Tuesday, North Korean state media warned of a nuclear attack on the United States at any sign of American aggression, as a U.S. Navy strike group steamed toward the western Pacific-a force U.S. President Donald Trump described as an "armada".

Trump's administration also accused Russian Federation of trying to shield Syria's government from blame for a deadly gas attack, as Secretary of State Rex Tillerson brought a Western message to Moscow condemning its support for President Bashar al-Assad. "From a technical perspective, the way is now clear for a run at $1,300 and possibly higher", said Jeffrey Halley, senior market analyst at OANDA. "Therefore, a "risk-off" sentiment will probably continue to overshadow stock markets in the near term", Margaret Yang of CMC Markets said in a commentary. Hong Kong's Hang Seng reversed its losses in the final hour of trading, rising 0.9 percent to 24,313.50, while the Shanghai Composite in mainland China lost 0.5 percent to 3,273.83. Australia's S&P ASX 200 gained 0.4 percent to 5,938.70.

(AP Photo/Shizuo Kambayashi). A woman waits to cross a street in front of an electronic stock indicator of a securities firm in Tokyo, Tuesday, April 11, 2017.

TOSHIBA: Shares in Toshiba Corp. closed 2.7 percent lower before the company released unaudited results for April-December following two delays.

Sterling also fell to five month low against the yen, with GBP/JPY touching a low of 136.5, but remained supported against the dollar, with GBP/USD at 1.2497.

The dollar fell almost 1 yen overnight and dropped further in Tokyo to its lowest level since mid-November, though it managed to crawl back up slightly in the afternoon.

Dai-ichi Life Holdings tumbled 2.8 percent, T&D Holdings slipped 2.7 percent and Mizuho Financial Group declined 1.6 percent.

PRECIOUS METAL: Gold, another asset sought by nervous investors, continued to gain, rising $2.20 to a five-month high of $1,276.00 an ounce. While gold may extend gains in the next few weeks, better US data and higher real interest rates will then push prices lower, Goldman Sachs Group Inc. said.

Brent crude extended gains for a fifth consecutive day to reach $56.53 a barrel, its highest since March 7, while WTI oil reached $53.65 a barrel, also a five-week high. Brent crude, the standard for worldwide oil prices, added 19 cents to $56.42 a barrel.

Like this: