Asian Stocks Gain But Wary Investors Eye North Korea Once Again
- Japan, Taiwan and South Korea were closed for holidays on Monday
- However Chinese markets were back and managed to gain despite weak local numbers
- The US Dollar slipped, as did its Australian cousin
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Asian markets were mixed Monday, those that were open that is. Holidays took Japan, South Korea and Taiwan out of the equation, although China was back after a week-long break.
Last week’s North Korea worries carried over into a new session. The rogue state is reportedly preparing to test a long-range missile, and these reports came after more bellicose commentary aimed at Pyongyang from US President Donald Trump.
The US Dollar slipped back a little as risk aversion ticked up although, without the bellwether Tokyo market, action was quite subdued. The Australian Dollar was hit by some weak Chinese service sector numbers which put the sustainability of quite perky growth in world’s second larger economy in an uncomfortable light.
Australia’s ASX ended the session up 0.5% with Shanghai stocks in the green despite those service-sector numbers. Gold prices inched up as the greenback faltered, while crude oil prices were higher, reportedly as investors mulled the chances of more production cuts along with news of a lower rig count in the US.
The remainder of Monday hasn’t a lot to offer in terms of scheduled economic news, and that’s with all due respect to Swiss deposit data and the European Central Bank Executive Board member Yves Mersch who is speaking later.
--- 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.