ALSO READAsia stocks mixed, dollar subdued amid North Korea concerns Asia stocks slip, dollar surrenders gains amid North Korea tensions Asia stocks slip amid North Korea concerns, dollar up on Mnuchin comments Asia stocks, dollar subdued after French relief, South Korea vote eyed Asia stocks shrug off cyber attack, North Korea threat to hit two-year high
By Nichola Saminather
South Korea's KOSPI <.KS11> fell 1.3 percent in early trade, taking its losses this week to 2.8 percent.
The Korean won
MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> dropped 0.5 percent in its third session of declines, with Australia <.AXJO> down 1.4 percent. Japanese markets were closed for a holiday.
Overnight, Wall Street closed sharply lower after Trump, with fiery rhetoric, warned Pyongyang against attacking Guam or U.S. allies after it disclosed plans to fire missiles over Japan to land near the U.S. Pacific territory.
Trump took specific aim at North Korean leader Kim Jong Un, saying, he had "disrespected our country greatly," and would not be "getting away with it."
The MSCI World index <.MIWD00000PUS> dropped 1.1 percent overnight in its third straight day of declines and its biggest one-day slide since May 17, as U.S. President Donald Trump stepped up his rhetoric against North Korea.
U.S. stock futures
"The latest threats over North Korea have finally escalated to the point where market has been obliged to react," Ric Spooner, chief market analyst at CMC Markets, wrote in a note.
"U.S. markets had previously been becalmed amidst the Goldilocks scenario of strong profit growth, low interest rates and full valuations. Difficult to assess political risk is now intruding on this scenario."
The dollar extended losses against the yen to hit a new two-month low. It was down 0.1 percent at 109.07 yen
Japan is the world's biggest creditor country and there is an assumption that investors there will repatriate funds in a crisis.
Weakness in U.S. Treasury yields may also be supporting the yen, some analysts said.
U.S. Treasury yields
The dollar eased slightly against a basket of major currencies <.DXY>.
U.S. crude oil crude futures
(Reporting by Nichola Saminather; Editing by Kim Coghill)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)