USA stocks jump as tensions with North Korea appear to ease

Paterniano Del Favero
Agosto 15, 2017

On Monday it rose 0.5% to 109.67 yen. Hong Kong's Hang Seng index jumped 1.2 percent to 27,198.59 and Australia's S&P ASX 200 surged 0.6 percent to 5,729.70.

Netflix shares were down 0.81 percent after Barron's reported on Saturday that the stock could drop by more than half by the end of the decade as Walt Disney plans its own streaming service and Amazon looms.

Tokyo's benchmark Nikkei 225 index lost 0.84 percent, or 164.76 points, to sit at 19,564.98 by the lunch break, while the broader Topix index of all first-section issues fell 0.82 percent, or 13.30 points, to 1,603.95.

"There's still cash on the sidelines looking for an opportunity to buy the dip".

After a week of jitters that send stock markets worldwide tumbling, investor fears eased after South Korea's president said resolving North Korea's nuclear ambitions must be done peacefully and US officials played down the risk of an imminent war. That prompted North Korea to say it was considering plans to fire missiles at Guam, a USA -held Pacific island. A spokesman says Marine Corps Gen. Joseph Dunford also told his South Korean counterparts Monday that the North's missiles and nukes threaten the world.

Global stocks lost almost $1 trillion last week after President Donald Trump warned North Korea that it would face "fire and fury" if it threatened the United States, leading to a war of words between Pyongyang and Washington.

Technology stocks outpaced the rest of the market following a strong report on the state of Japan's economy. The numbers, the fastest quarterly expansion in over two years, were better than forecast and represented the sixth straight quarter of growth.

Gross domestic product expanded an annualised 4.0 per cent in April-June, more than the median estimate for 2.5 per cent and the biggest increase since January-March 2015.

In forex trading, the dollar bought 109.37 yen, edging up from 109.11 yen in NY on Friday, but still sharply lower than 109.99 yen in Tokyo on Thursday.

The euro held steady at $1.1818, having pulled up from Friday's intraday low of $1.1749. The Nikkei index slipped nearly 1 percent after hitting a three-month low even after data showing robust 1.0 percent second-quarter growth in Japan.

At 10:33 a.m. ET (1433 GMT), the TSX rose 127.21 points, or 0.85 percent, to 15,160.59. The Dow Jones industrial average gained 135.39 points, or 0.6%, to 21,993.71. Volume hit about 84 million shares, making Snap the most-traded stock across all USA exchanges.

US crude was last down 2.7 percent at $47.50 per barrel and Brent was last at $50.65, down 2.78 percent. It rose 23 cents to settle at $48.82 a barrel on Friday.

But energy shares were under pressure as oil prices tumbled.

USA stock futures rose 0.6 per cent, suggesting a higher open later in the day.

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