Yen rises on risk aversion after North Korea's nuclear test

FTSE 100 preview Downtrend to continue as North Korea tensions persist

FTSE 100 preview Downtrend to continue as North Korea tensions persist

Japan's Nikkei 225 edged down 0.14 percent, or 27.84 points, to close at 19,357.97 with financials and automakers ending the session lower.

U.S. gold futures were up 0.1 per cent at $1,345.2 an ounce.

Home builders: Back on the FTSE 100, Berkeley Group fell 2.7% as the home builder said the London market continued to be adversely impacted by Brexit uncertainty and changes to stamp-duty land tax.

The yen was trading at 114 yen to the dollar in early July.

Experts have expressed "alarm" at the level and pace of development of the nuclear technology North Korea tested over the weekend, which saw the gold price reach an 11-month high.

The dollar weakened further against its major peers in the wake of the news, sinking to 92.45.

US stocks built on moderate gains after news that President Donald Trump, siding with Democrats over his fellow Republicans, said he agreed to pass an extension of the USA debt limit until December 15, potentially avoiding an unprecedented default on US government debt.

USA stock futures declined on Labor Day, setting the stage for a volatile start to post-holiday trading. "While North Korea is still a wild card for certain, on the central bank front, both the ECB and the Fed are looking a little bit more dovish", Ms Erickson said.

Three Federal Reserve policymakers on Tuesday expressed doubts about further rate hikes, with one influential policymaker calling for a delay in raising USA interest rates until the central bank was confident of a rebound in inflation.

Financial stocks also gained 0.55 percent, a day after they suffered their biggest one-day fall since mid-May.

Demand for precious metals weighed on the USA dollar on Monday.

The euro was up 0.1 percent at $1.1925.

Each U.S. index had been on a multiday upward trend.

It is becoming a recurring theme: North Korea launches or threatens to launch a missile, gold rises, stocks tumble, then things calm down and stocks more than make up their losses.

In early Asian trade Wednesday, the dollar bought 108.70 yen, down from 108.79 yen in NY late Tuesday and 109.39 yen in Tokyo Tuesday. News of North Korea's latest nuclear test caused investors to react in a classic risk-off mode, buying the safe-haven Swiss Franc and Japanese Yen in favour of riskier currencies.

The stronger yen also weighed on global exporting companies such as Japan's auto giants, with Toyota down 0.75 percent at 6,172 yen by the break, Honda lower by 0.75 percent at 3,036 yen and Nissan off 0.96 percent at 1,082 yen.

Later Thursday, the European Central Bank was expected to leave interest rates unchanged.

In the banking sector, Westpac, Commonwealth Bank and National Australia Bank are advancing in a range of 0.5 percent to 0.8 percent, while ANZ Banking is losing 0.2 percent.

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