AFP, Hong Kong :
Asian equities headed back into the red Thursday afternoon, wiping out a nascent recovery in the morning as spiralling tensions over North Korea lingered for a second day.
Markets had taken heart from reassuring words from the US Secretary of State Rex Tillerson seeking to play down the escalating war of words between Washington and Pyongyang.
But losses soon resumed, with Tokyo edging down as the Nikkei again came under pressure from the strength of the safe-haven yen, which hit eight-week highs Wednesday against the dollar.
Hong Kong shed more than one percent in afternoon trade and Shanghai closed down, while Seoul shares continued their sell-off after slumping Wednesday, with the won again softening.
European bourses also sank in early trade Thursday, after the Dow recorded its second straight negative close Wednesday.
Angry exchanges over Pyongyang’s nuclear and missile programmes are stoking fears of a miscalculation that could lead to catastrophic consequences on the Korean peninsula and beyond.
“The North Korea situation is still unstable and investors are controlling risk and taking profit after recent gains,” said Sam Chi Yung, a Hong Kong-based strategist at South China Financial Holdings.
Asian equities headed back into the red Thursday afternoon, wiping out a nascent recovery in the morning as spiralling tensions over North Korea lingered for a second day.
Markets had taken heart from reassuring words from the US Secretary of State Rex Tillerson seeking to play down the escalating war of words between Washington and Pyongyang.
But losses soon resumed, with Tokyo edging down as the Nikkei again came under pressure from the strength of the safe-haven yen, which hit eight-week highs Wednesday against the dollar.
Hong Kong shed more than one percent in afternoon trade and Shanghai closed down, while Seoul shares continued their sell-off after slumping Wednesday, with the won again softening.
European bourses also sank in early trade Thursday, after the Dow recorded its second straight negative close Wednesday.
Angry exchanges over Pyongyang’s nuclear and missile programmes are stoking fears of a miscalculation that could lead to catastrophic consequences on the Korean peninsula and beyond.
“The North Korea situation is still unstable and investors are controlling risk and taking profit after recent gains,” said Sam Chi Yung, a Hong Kong-based strategist at South China Financial Holdings.
