U.S. stock futures, dollar slip on rising Korean tensions

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Reuters TOKYO
Last Updated : Aug 09 2017 | 5:42 AM IST

By Lisa Twaronite

TOKYO (Reuters) - U.S. stock futures slipped while U.S. Treasuries, gold and the safe-haven yen rose in early Asian trading on Wednesday after tensions on the Korean peninsula escalated with Pyongyang's warning that it is "carefully examining" plans for a missile strike on the U.S. Pacific territory of Guam.

Just hours after U.S. President Donald Trump told North Korea that any threat to the United States would be met with "fire and fury," a spokesman for the Korean People's Army said in a statement carried by the North's state-run KCNA news agency that it was considering a strike aimed at U.S. military bases on Guam.

S&P 500 e-mini futures were down 0.2 percent, while the dollar dipped 0.2 percent against its perceived safe-haven Japanese counterpart to 110.11 yen .

The euro slid 0.2 percent to 129.47 yen , and gained 0.1 percent against the dollar to $1.1761 .

The dollar index, which tracks the greenback against a basket of six major rivals, edged down 0.1 percent to 93.545 , edging closer to last week's 15-month low of 92.548.

The yield on the benchmark 10-year U.S. Treasury note fell to 2.261 percent from its U.S. close of 2.282 percent on Tuesday.

Spot gold added 0.1 percent to $1,261.71 an ounce, pulling away from the previous session's two-week lows. [GOL/]

U.S. stocks closed lower on Tuesday after a late afternoon selling spree as investors fled for safety after Trump's vow to respond aggressively to any North Korean threats. [.N]

Japan said on Tuesday it was possible that North Korea had already developed nuclear warheads and warned of an acute threat posed by its weapons programmes as Pyongyang's continues missile and nuclear tests in defiance of U.N. sanctions.

Asian shares were slightly higher on Wednesday, with MSCI's broadest index of Asia-Pacific shares outside Japan up 0.1 percent in early trading.

Crude oil prices extended their slide from Tuesday as exports from key OPEC producers rose and despite news of lower crude shipments from Saudi Arabia. U.S. crude shed 10 cents to $49.07 a barrel. [O/R]

(Reporting by Lisa Twaronite; Editing by Eric Meijer)

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First Published: Aug 09 2017 | 5:27 AM IST

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