Stocks down, gold up after North Korea threat

US stocks close lower, ending Dow's 10-day winning streak

USA indexes were trading at session lows on Thursday afternoon, with the Dow and the Nasdaq posting triple-digit point declines, as investors fretted over escalating tensions between the United States and North Korea.

On Friday, investors are expected to continue to monitor the situation between the USA and North Korea.

Japan's Nikkei 225 rose 0.08 percent, but was off session highs seen earlier.

Retailers were also falling Thursday. Meanwhile, the country's KOSPI Composite Index SEU, -1.10% fell 1.1% to 2,368.39. While machinery orders are regarded to be a volatile metric, they could influence market sentiment. However, strength in the Utilities sectors limited the losses. The consumer discretionary index .SPLRCD was one of its biggest losers with a 0.47 percent drop. The Nasdaq composite lost 96 points, or 1.5 percent, to 6,256.

USA stocks were modestly higher in late morning trading on Friday as investors cautiously dipped back into riskier assets, after a three-day losing streak on concerns over escalating tensions between the United States and North Korea.

Mounting tensions lifted USA defense stocks.

"Although we're seeing some flight to safe havens, it seems that it's more of a risk consolidation".

The Korean won fell against the USA dollar.

South Korea's won dropped 0.9 per cent against the USA dollar to its lowest close since July 13.

U.S. Treasury yields US10YT=RR fell to as low as 2.197 percent, their lowest level since June 28 overnight.

Gold on Thursday held steady near two-month highs hit the session before, bolstered by safe-haven demand triggered by rising tensions on the Korean peninsula.

Gold futures prices GCZ7, +1.18% were up almost 1% to $1,273.80 per ounce.

On Thursday, New York Federal Reserve President William Dudley said he expects sluggish United States inflation to rise over the next several months while the hot labour market gets even hotter.

The Japanese yen strengthened 0.08 per cent versus the greenback at 110.00 per dollar.

The major European also saw further downside on the day.

Gold fell 2.10 to 1,262.60 dollars an ounce.

The data comes amid tepid inflation that has remained below the Fed's 2 percent target, despite low unemployment. Its net profit came in at A$445 million ($351.8 million), under the A$523 million reported past year.

The S&P 500 closed 0.24 percent lower at 2,474.92, with materials leading decliners.

Several Asian corporates are expected to report earnings during the day. Hong Kong's Hang Seng added 0.6%.

S&P Global rates Guam's General Obligation debt (GO) at a highly speculative BB-minus level with a stable outlook given its large unfunded liabilities and tight year-to-year budgets, said S&P Global analyst Ted Chapman. Brent crude slipped 0.04 percent to trade at $52.68 a barrel and USA crude was flat at $49.56.

Michael Kors and Ralph Lauren both posted better-than-expected earnings before the bell Tuesday, sending their stocks higher by 21.5 percent and 13.3 percent, respectively.

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