The state of North Korea is causing market changes in the Asian stocks. They stocks are falling and the yen is reaching highs, after a senior Pyongyang official said the U.S. is becoming “more vicious and more aggressive” under President Donald Trump.
Vice Foreign Minister Han Song Ryol also told the Associated Press, “We will go to war if they [the Americans] choose.” This is very worrying, as the leaders of both countries have very strong personalities and are not looking to back down.
Investors in Asian markets that weren’t closed for Good Friday weren’t about to take chances, paring back their exposure to risk assets and moving some fresh capital to supposed havens like Japan’s currency.
The yen USDJPY, -0.42% rallied after the AP report, with the dollar falling back below ¥109. The Nikkei NIK, -0.49% , which has dropped for four straight sessions in the wake of a stronger yen, declined 0.5% Friday.
The only stocks to maintain merit were seen in Japan. Other regions faced the decline among the markets that were trading during this weekend. Some of the markets were closed for the Good Friday holiday in line with other areas of the world..
Taiwan’s Taiex Y9999, -1.05% fell 1.1%
South Korea’s Kospi SEU, -0.64% fell 0.6%,
Shenzhen Composite 399106, -1.39%
A lot of these drops are a result of ongoing rumors and regulatory pressure.
The Friday holiday puts a hold on commodity and fixed-income markets, so there are changes in the currency markets in the works.
Next week in Japan, Vice President Mike Pence is scheduled to meet his counterpart, Deputy Prime Minister Taro Aso, to discuss economic issues and hopefully improve U.S/Asia trade relations
Hideyuki Ishiguro, senior strategist at Daiwa Securities, said the U.S. administration appears to be trying to score more points in foreign policy as Trump struggles to achieve much on domestic issues.