Markets across Asia are looking shaky as the war of words between the US and North Korea escalates

Photo by Chung Sung-Jun/Getty Images

Geopolitical concerns between the United States and North Korea are escalating, and don’t Asian markets know it.

It’s risk off across the region on Wednesday as investors scurry back to the sidelines.

The latest bout of risk aversion follows an escalation in rhetoric between the two nations over the past few hours.

Following a warning from Donald Trump overnight that further threats from North Korea towards the United States would “be met with fire and fury unlike the world has ever seen”, Pyongyang responded this morning that it is “now carefully examining the operational plan for making an enveloping fire at the areas around Guam with medium-to-long-range strategic ballistic rocket Hwasong-12,” according to the official Korean Central News Agency (KCNA).

Here’s the scoreboard for stocks.

Australia ASX 200 5766.60 , 0.40%
NZ NZX 50 7799.64 , 0.22%
Japan TOPIX 1615.63 , -1.20%
Shanghai Comp 3273.18 , -0.26%
Shenzhen Comp 1883.46 , 0.23%
HK Hang Seng 27664.51 , -0.68%
Sth Korea KOSPI 2374.38 , -0.85%
Sinagpore STI 3318.08 , -0.08%
Taiwan TAIEX 10478.47 , -0.86%
Philippines PSI 7950.89 , -0.45%
Indonesia JKSE 5807.26 , -0.06%
Malaysia KLCI Index 1777.99 , -0.21%
Thailand SET 1575.6 , -0.12%
India Nifty 50 9952.05 , -0.27%
S&P 500 Futures 2465.25 , -0.30%

And currencies.

AUD/USD 0.7874 , -0.48%
NZD/USD 0.7313 , -0.19%
USD/JPY 109.96 , -0.31%
USD/CNY 6.6926 , -0.18%
USD/CNH 6.7037 , -0.10%
USD/HKD 7.8181 , -0.07%
USD/KRW 1135 , 0.56%
USD/SGD 1.3637 , 0.06%
USD/TWD 30.22 , 0.14%
USD/PHP 50.55 , 0.00%
USD/MYR 4.286 , 0.05%
USD/IDR 13327 , 0.11%
USD/THB 33.25 , -0.06%
USD/INR 63.77 , 0.12%
US Dollar Index 93.64 , -0.01%

And commodities.

Brent Crude $51.93 , -0.40%
Gold $1,264.16 , 0.31%
Silver $16.53 , 0.71%

And 10-year government bond yields.

United States 2.251% , -0.031%
Japan 0.058% , -0.010%
Australia 2.648% , 0.013%

Though the moves in markets so far have been modest, it’s clear that investors have begun to price in the likelihood that this latest war of words could turn into something more sinister.

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