Advertisement

GLOBAL MARKETS-U.S. stock futures drop, yen gains after North Korea's missile launch

From Reuters - September 14, 2017

TOKYO (Reuters) - U.S. stock futures dipped and the yen rose after North Korea fired another missile over Japan into the Pacific Ocean on Friday, in a sign that Pyongyang remains defiant despite tightening international sanctions.

U.S. stock futures ESc1 fell 0.2 percent while the dollar fell to as low as 109.55 yen JPY= from around 110.20 in late U.S. trade on Thursday. It last stood at 109.98 yen.

Japan's Nikkei .N225 were almost flat while South Korea's Kospi .KS11 and Australia's main indexboth dipped 0.3 percent.

MSCIs Asia-Pacific share index excluding Japan .MIAPJ0000PUS was down 0.1 percent.

Japan said the North Korean missile fell into sea about 2,000 km (1,240 miles) east of Hokkaido.

The launch came only days after the U.N. Security Councilapproved new sanctions against Pyongyang for its Sept. 3 nuclear test.

Still, markets are growing used to North Koreas sabre-rattling.

There have been reports suggesting North Korea is preparing a missile launch, so this was by no means a surprise, said Hirokazu Kabeya, chief global strategist at Daiwa Securities.

Also, in the past, markets have stabilised within a few days after North Koreas missile launch. So in a way this seems like something markets have already experienced before, thus producing limited reaction, he added.

Before North Koreas missile launch, U.S. bond yields had risen while Wall Street shares were mixed after U.S. consumer inflation data rekindled expectations that the Federal Reserve will raise interest rates in December.

The consumer price index rose 0.4 percent from previous month in August, faster than the 0.3 percent increase forecast among analysts polled by Reuters.

Advertisement

Continue reading at Reuters »