North Korea tested the nuclear bomb on Sunday, which immediately provoked investors to switch to safe haven assets.
Asian stocks fell while gold, sovereign bonds and the yen rose during the Asian session, although the losses in the capital were modest amid expectations that the outbreak would be rapid.
The greatest decrease was observed in Japan and South Korea, while in other regions there was a more moderate reaction.
Nikkei fell by 0.9 percent, while MSCI fell by 0.4 percent. Speaking outside the White House after meeting with President Trump and his national security team, US Secretary of Defense Jim Mattis said that Trump asked to be informed of all available military options.
The dollar fell to 0.9610 against the Swiss franc at the beginning of trading, and the dollar index was 92.675, which is 0.15% lower. The precious metal reached a 10-month high and last rose 0.6 percent, and the euro was stable with investor fears due to the upcoming ECB meeting on Thursday. On Friday, Wall Street finished the week on a positive note after the job report retained expectations that were pushed into the background due to another interest rate increase this year. Dow jones closed on Friday with a 0.18-percent gain, while Nasdaq added 0.1%, and the S & P 500 – 0.20 percent.
Oil prices were volatile in early trading, crude oil rose during production stops, while Brent could not withstand the onslaught on gold futures after a powerful North Korean nuclear test explosion. American oil rose 14 cents, reaching $ 47.44 a barrel in early trading, while Brent crude fell 29 cents to $ 52.46.
Today is Labor Day in the US and Canada, however in the United Kingdom there will be a PMI report on construction at 08:30 GMT.