The yen and gold rose as index futures fell slightly after North Korea's provocation. The tension had already begun earlier on Thursday when Japanese sources confirmed that Pyongyang was preparing a new launch.
In response to North Korea's new test, US Secretary General Rex Tillerson said he needed more serious sanctions against North Korea and, in particular, stopping oil supplies to the country. We look forward to details of the extraordinary briefing in the White House and comments from Donald Trump.
Asian indices futures reflect North Korea's latest experience, with the Nikkei 225 traded at $0.13 lower, ASX200 with -0.12%, Hang Seng with -0.43%. JPY, on the other hand, traded 0.25% higher.
Given the background around North Korea, expectations are for the negative sentiment to be preserved during the Asian Stock Exchange.
We expect a correction of the strong USD/JPY decline in the next few hours, and then a resumption of downward movement.
Jr Trader Petar Milanov
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