Asian markets rebound after North Korea-fuelled losses

The rush to the sidelines that followed Pyongyang's launch of a rocket over Japan Tuesday abated through the day as initial fears subsided, while the dollar clawed back losses against the yen and euro.

Asian markets rebound after North Korea-fuelled losses

World Bulletin / News Desk

Asian traders returned to buying Wednesday, reversing the previous day's losses as Donald Trump's measured response to North Korea's missile launch and upbeat US data restored a semblance of calm to markets.

While Japanese Prime Minister Shinzo Abe called the launch "an unprecedented, serious and grave threat", Trump -- who had warned of "fire and fury" over a previous missile test -- said only that "all options" were on the table.

North Korean leader Kim Jong-Un has promised more missile flights over Japan, insisting his nuclear-armed nation's provocation was a mere "curtain-raiser", in the face of UN condemnation and US warnings of severe repercussions.

But while analysts said the North Korea threat was still apparent, unease had been soothed by the fact that Trump and Abe were sticking to a diplomatic line and the UN Security Council had met.

"With a toned-down President Trump and the UN Security Council in closed-door meetings with economic sanctions the preferred option, the world just feels like a safer place today, and investors are relishing this respite," said OANDA head of Asia-Pacific trading Stephen Innes.

On equity markets Seoul -- which ended down 0.2 percent Tuesday after losing more than one percent in the morning -- added 0.3 percent and Tokyo's Nikkei finished 0.7 percent higher, helped by a weaker yen.

Hong Kong rallied 1.2 percent and Singapore put on 0.4 percent, while Sydney, Wellington, and Taipei also closed higher. However, Shanghai ended 0.1 percent down after late selling.

In early European trade London and Paris each rose 0.5 percent and Frankfurt added 0.7 percent. All three had ended sharply lower on Tuesday.

Güncelleme Tarihi: 30 Ağustos 2017, 11:50
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