Asia shares up as North Korea tensions ease, wary Fed weighs on dollar
SINGAPORE (Reuters) - Asian stocks edged higher on Thursday as tensions between the United States and North Korea came off the boil, while the Federal Reserve's concerns about weak US inflation weighed on the dollar.
MSCI's broadest index of Asia-Pacific shares outside Japan added 0.5 percent.
Japan's Nikkei slipped 0.1 percent, weighed down by a stronger yen as the dollar wilted and shrugging off data showing the country's exports rose for an eighth straight month in July.
Australian shares gained 0.1 percent and the Australian dollar inched up 0.1 percent to $0.7931 after the country added 27,900 jobs in July, beating expectations for an increase of 20,000.
The unemployment rate remained at 5.6 percent, as expected, although full-time employment fell by 20,300.
South Korean shares advanced 0.5 percent after the leaders of both North Korea and the United States appeared to back off from their heated rhetoric from last week.
Trump on Wednesday praised North Korean leader Kim Jong Un for a "wise" decision not to fire missiles towards the US Pacific territory of Guam, after North Korean media reported that Kim had delayed to decision while he waited to see what the US did next.
While that helped Wall Street close in positive territory overnight, concerns on the home front sent the dollar into reverse.
Trump announced the disbanding of two high-profile business advisory councils on Wednesday after eight executives quit in protest over his remarks blaming weekend violence in Virginia not only on white nationalists but also on anti-racism activists who opposed them.
Moreover, minutes from the Fed's July meeting released on Wednesday showed the central bank grew more wary about recent weak inflation, with some policymakers wanting to halt interest rate hikes until it was clear the trend was temporary.
Money market futures FFF8 are now pricing in about a 40 percent chance the Fed will raise rates by December, compared to just under 50 percent before the Fed's minutes.
"The Federal Open Market Committee minutes confirmed one thing, which is that the committee members are not on the same page and there is no clear date when the Fed will initiate the process of reducing the size of the balance sheet," Naeem Aslam, chief market analyst at Think Markets in London, wrote in a note.
"Trump dissolving his major business groups makes the investment community even more pessimistic because this sets the stage for even more failure for him."
The dollar fell 0.3 percent to 109.79 yen, extending Wednesday's 0.4 percent slide.
The dollar index, which tracks the greenback against a basket of six major peers, dropped 0.2 percent to 93.357 after Wednesday's 0.3 percent loss.
The euro rose 0.1 percent to $1.17835, extending its 0.3 percent gain overnight, after the euro zone's second-quarter growth was revised to 2.2 percent from a year earlier, from 2.1 percent previously.
Bitcoin, which has surged over $1,500 this month on speculative demand for the digital currency, slipped slightly.
It fell about 1.5 percent to $4,308.48, but remained within a whisker of its all-time high of $4,400 touched earlier this week.
In commodities, oil prices edged up but remained close to a 3-1/2 week low touched on Wednesday as rising US production offset a decline in stockpiles by the most in a year.
US crude was about 0.2 percent higher at $46.88 a barrel, failing to make up most of Wednesday's 1.6 percent slide.
Global benchmark Brent gained 0.4 percent to $50.47, after the previous session's 1 percent drop.
Industrial metals held gains following their surge overnight, underpinned by expectations of strong global demand and tight supplies.
Benchmark zinc on the London Metal Exchange CMZN3 set a new decade high of $3,145 a tonne on Thursday, and was last up 0.2 percent from its previous close at $3,126.
London copper CMCU3 gained 0.2 percent to $6,545 a tonne, after hitting $6,580, its highest level since November 2014, earlier in the session. Gold advanced 0.4 percent to $1,287.51 an ounce, adding to Wednesday's 0.9 percent jump.
About 92 News HD Live Main TV Channel of Pakistan:
92 News (also known as 92 News HD Plus (Channel 92) is a conservative Urdu language TV channel based in Lahore, Pakistan.
Mian Muhammad Hanif is the chairman of the channel.
This TV channel is a subsidiary of Madinah Group under Galaxy Media Group.
The channel's name, 92, is to celebrate the 1992 Cricket World Cup won by Pakistan. The number 92 is also the telephone country calling code of Pakistan, which is another major reason behind the channel's name.
92 News HD is Pakistan’s first HD Plus News Channel. Aims to bring credible & responsible News & important stories from Pakistan & around the World
We bring you Latest Pakistani and International News at 92 News Hd Plus to Read and Watch
We believe in genuine and true journalism, we do not prevail sensation just for ratings.
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