Korean shares end lower on foreign selling amid tensions over N. Korea


Korean shares end lower on foreign selling amid tensions over N. Korea

US stocks rose Friday but still notched their biggest weekly loss in months, as investors were shaken by disappointing earnings results and an escalation of threats between the USA and North Korea.

The Nasdaq Composite Index climbed 39.68 points, or 0.6%, to close at 6,256.56. On Thursday, the Dow Jones index dropped 0.9 percent, or 204,69 points, to 21 844,01. In three days. the Nasdaq has lost 2.6% - the most since last September.

U.S. President Donald Trump told reporters at his golf club in Bedminster, New Jersey, on Thursday that he will respond forcefully to any North Korean attack on the U.S. or its allies.

The Russian dollar-traded index RTS was down 1.49 percent, and ruble-traded MICEX fell 1.29 percent by midday.

However, an Associated Press report that the USA and North Korea have been engaged in back channel talks (https://apnews.com/686ac7c761694b28b67793a1d8297145?link=mktw) for several months even as they exchange incendiary threats helped to soothe some of the jitters.

Still, analysts said the market seemed to be a bit skeptical that the North Korea situation would grow into a major crisis, noting that the losses were still not that deep.

Wall Street stocks dropped early Thursday after North Korea announced a plan to send missiles towards Guam, raising the stakes of a nuclear standoff with the United States. Broadcom gave up $5.72, or 2.3 percent, to $243.45.

Several financial sector companies also helped pull down the market.

Significant strength is also visible among computer hardware stocks, as reflected by the 1.1% advance by the NYSE Arca Computer Hardware Index.

RETAIL SLUMP: Disappointing quarterly results from big department store chains put investors in a selling mood.

Macy's Inc. tumbled 10.2 percent after the company said its sales continued to decline in the second quarter.

Economic data showed U.S. producer prices unexpectedly fell in July, recording their biggest drop in almost a year, while separate figures showed the number of Americans filing for unemployment benefits unexpectedly rose last week. Top automaker Hyundai Motor fell 2.07 percent to 142,000 won.

On the currency front, the US dollar is trading at 108.82 yen compared to the 109.20 yen it fetched at the close of NY trading on Thursday. The euro rose to $1.1774 from $1.1752. Britain's FTSE 100 sank 1.3 percent. The Stoxx Europe 600 benchmark was down 1% (http://www.marketwatch.com/story/european-stocks-face-worst-week-in-9-months-on-us-north-korea-tensions-2017-08-11), while Hong Kong's Hang Seng led the Asian losses with a drop of 2%. In Australia, the S&P/ASX 200 was down 1.13%.