Asian shares continued to suffer some losses on Tuesday after comments from Ri Yong Ho who serves as foreign minister for North Korea stated that the country holds the right to attack strategic U.S. bombers despite not being inside the airspace of the country.
According to the North Korean representative, this is due to U.S. President Donald Trump’s comments regarding declaring war against the other country. Despite the White House responding that they have not declared any war against the other, most stocks still suffered on Tuesday.
The market which was mostly low on Monday as investors digested the political events that took place over the weekend continued to follow a downward direction. Global stocks have suffered in the past month due to the up and down concerns between the two countries which started when North Korea fired a ballistic missile on Japan’s northern waters.
Asian shares which were mostly shaky on Monday’s session was
South Korea’s Kospi which was down by 0.5% during the last market trading session was down by another 0.3%. The Nikkei in Japan also edged 0.2% lower as the Japanese yen rallied.
In the U.S, the Dow Jones Industrial Average fell 0.24% to 22,296.09 with stocks such as Visa and Boeing weighing in on the index the most. The S&P 500 also suffered the most losses after it inched down by 1.4% or by 5.56 points at 2,496.66. The Nasdaq composite index was also down by more than 1% to 6,370.59.
Gold prices rallied as the markets turned to safe-haven assets with the gold for December delivery rising by 1.1% to $1,311.50 per troy ounce. Most gold prices are now at a one-week high in the midst of the political worries between the US and North Korea.
Meanwhile, the U.S. dollar touched a one-month high against the euro prior to Federal Reserve chair Janet Yellen’s speech. The greenback is up against most currencies on Tuesday before the Japanese yen rallied due to the political concerns. The euro slid on Monday following Germany’s Chancellor Angela Merkel’s victory in getting a fourth term during an election held during the weekend.