Asian Markets Torpid Despite Yet Another N.Korea Missile Test
- Asian markets were becalmed as a new week got under wau
- A lack of economic data met looming public holidays in the US and UK
- Another North Korean missile test was shrugged off
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Asia/Pacific markets were predictably sluggish Monday in a session which will see US and UK markets either closed or thinly traded thanks to public holidays.
In a day of scant economic news markets shrugged at reports of yet another missile test by North Korea. Military sources in Seoul said that the North launched a short-range ballistic weapon which landed in the sea off its own east coast. This is just the latest in series of tests defying global sanction threats. The Nikkei ended essentially flat, down 0.02%, with the ASX down 0.6%. Chinese stocks were in the green as the session closed, but not by a lot.
It was a sepulchral session for foreign exchange majors, with the US Dollar up, but onl;y just. Its index against major-traded peers rose about 0.1%, well above last week’s six-month lows. Crude oil prices were lower as last week’s news of a relentless increase in US drilling-rig numbers outweighed more supply tightening from traditional producers in investors' minds. Gold prices held near four-week highs after rising nearly 1% on Friday.
The rest of the day offers nothing at all in terms of scheduled economic data but European Central Bank President Mario Draghi will speak to the European Parliament’s economic committee.
--- Written by David Cottle, DailyFX Research
Contact and follow David on Twitter: @DavidCottleFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.