Asian stocks mostly lower on growing unease over North Korea

Workmen prepare new carpeting for the West Wing of the White House in Washington Friday Aug. 11 2017 as it undergoes renovations while President Donald Trump is spending time at his golf resort in New Jersey

CURRENCIES: Dollar Slides Vs. Swiss Franc As US-North Korea Discord Prompts Run To Safety

"Obviously we are looking at the increased tensions between the USA and North Korea", said Brad Bechtel, managing director FX at Jefferies in NY.

After North Korea claimed Trump is "driving" the Korean peninsula to the "brink of a nuclear war", the president responded with a tweet suggesting the U.S. is prepared to take military action against the communist nation. In a note to investors, Paul Christopher, head global market strategist, and Tracie McMillion, head of global asset allocation, suggest, "the threat of a nuclear weapon is certainly more serious than previous threats, but that threat also may increase the probability of a diplomatic solution".

Japanese markets were closed for a holiday but the in-demand yen powered on, hitting an eight-week high of 108.91 yen to the dollar, adding to its biggest weekly gain since May.

LONDON, Aug 10 (Reuters) - World stocks fell for a third day on Thursday and investors moved again into the Swiss franc, yen and gold, prompted by the war of words between the United States and North Korea.

Trump, whose threat this week to bring "fire and fury" was dismissed by North Korea, said Thursday that statement might not have been "tough enough".

Despite the drop, 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.

The Japanese yen hit an eight-week high against the USA dollar, while spot gold also reached a two-month high.

The strength in the sector came amid a jump in the price of gold. With the sell-off on the day, the Nasdaq and the S&P 500 fell to their lowest closing levels in a month.

The dollar index .DXY , which tracks the greenback against six rival currencies, was down 0.12 percent to 93.53, after rising as high as 93.888 earlier in the session.

Crude oil futures are slipping USD0.10 to USD48.49 a barrel after tumbling USD0.97 to USD48.59 a barrel on Thursday.

The S&P/TSX composite index was down 39.02 points to 15,217.33, with most sectors finishing in the red while bullion stocks surged almost 1.9 per cent.

High-flying technology names suffered outsized losses on the day, with Apple falling 3.2 percent, Amazon 2.6 percent and Facebook 2.2 percent.

Emerging market stocks lost 1.28 percent.

Priceline Group slumped 6.5 percent after issuing a profit forecast that was weaker than analysts were expecting.

Australian stock futures dropped 1.2 percent and New Zealand stocks slid 1.1 percent.

A report released by the Labor Department showed a modest uptick in consumer prices in the United States in the month of July.

Markets saw a tentative recovery in risk appetite in overnight USA and early Asian trading, but anxiety mounted again as Asian stocks fell back and London, Frankfurt and Paris dropped 0.5-1.2 percent in Europe.

A report on consumer price inflation is likely to attract attention on Friday, with consumer prices expected to rise by 0.2 percent in July.

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