Business News

TOKYO, (APP/AFP) – Traders bought the yen and
dumped the South Korean won Friday as financial markets were jolted by news that North Korea conducted another nuclear test, reigniting geopolitical tensions.
Pyongyang later said the test had confirmed that it could mount a
nuclear warhead on a rocket, hours after it carried out its fifth atomic explosion.
In response, investors bought the Japanese yen, which is widely seen
as a safe investment in times of turmoil and uncertainty.
In Tokyo afternoon trading, the dollar weakened to 102.09 yen from
102.48 yen in New York, while the euro slipped to 115.15 yen from 115.40 yen.
The won took a hit, sinking about 0.7 percent against the greenback
on the news, while Seoul’s KOSPI share index dropped more than one percent.
“We can probably say that the market is reacting a little to signs
North Korea conducted a nuclear test,” Soichiro Monji, general manager for the economic research department at Daiwa SB Investments, told Bloomberg News.
“We’re not seeing a huge amount of trading on this news, but it does
contribute to a slight risk-off mood. The yen is strengthening, and shares
aren’t managing to rise.”