Stock markets were spooked by North Korea’s sixth nuclear test over the weekend which had the usual effect of rallying safe-haven such as gold and treasuries. The US dollar also found a bid with the Japanese yen benefiting as money scattered from the risk. The Nikkei ended the day around 1% lower with exporters being hit but the currency appreciation was responsible for much of this move. Hong Kong’s Hang Seng was also around 1% weaker but interesting to see that mainland market closed higher (+0.4%). A few markets were closed today (Malaysia and Vietnam) but the obvious one was the US closed for Labour Day. All this weekend news came after the US jobless number released on Friday but was probably more subdued because of the thin trading volumes.
This post was published at Armstrong Economics on Sep 4, 2017.