Asian equities turn lower as Pyongyang tests new missile; safe-haven demand on

Asian stocks notched down on Friday, with investors moving to safe-haven assets as the North Korean regime launched a new missile, renewing geopolitical concerns across markets.

Australia ASX -42.50 -0.73% 5,755.90 CLOSED

Shanghai Comp -17.66 -0.52% 3,353.76 OPEN

Hang Seng Index -20.23 -0.07% 27,756.97 OPEN

Nikkei 225 +102.06 +0.52% 19,909.50 CLOSED

TSEC 50 Index +26.84 +0.25% 10,580.41 CLOSED

Kim Jong Un’s government fired a missile late on Thursday that flew over Japan before landing in the sea, two thousand kilometers from Hokkaido, according to media outlets.

The United Nations Security Council (UNSC) will gather on Friday as of 19:00 GMT to again discuss actions against the communist national. The meeting was called by the US and Japan.

Earlier this week, the UNSC imposed a new package of economic sanctions against Pyongyang as a response to its September 3 alleged nuclear test. Kim Jong Un’s administration strongly condemned the measures taken, threatening to sink Japan and turn the US into ashes.

Safe-haven demand quickly adjusted overnight in the light of this developments. Gold futures were trading at $1,334.70 a troy ounce by the time of this writing, adding 0.41 percent. The Swiss franc went as far as 0.9610 against the dollar as traders searched for shelter.

No relevant economic reports were released in the Asian session. Investors are looking ahead to a series of US reports, including retail sales as of 12:30 GMT, industrial production at 13:15 GMT and consumer sentiment for September as of 14:00 GMT.

Yesterday, the US Commerce Department said consumer prices advanced by 0.4 percent in August, up from an estimated 0.3 percent build. The core consumer price index, which excludes volatile components such as food, energy and transport, met forecast of a 0.2 percent increase.

In a separate report, the Labor Department said initial jobless claims fell by 14,000 to a seasonally adjusted 284,000. Economists had estimated a rise to 300,000 applications.

Fort Financial Services