Missile Launching, Risks-Avoiding, JPY Goes Up, Gold over 1320 USD
North Korea launched a missile passed Japan at dawn. The Japanese government announced emergency evacuation notification to their people. Japanese stocks fell to the lowest point in the 4 months. South Korea fell 1%, Taiwanese fell 0.5% and Hong Kong fell a bit as well.
Since the tense international relationship, the market tries to avoid the risks. JPY goes up. The spot price of gold increased 12 US dollars over 1320 USD. It’s the highest price in the past 9 months. With the impact of the missile, JPY goes up while Japanese stocks decreased 0.7%. NKI even fell to the lowest point in the 4 months, neared 19280 in the morning. JP-TPX fell around 0.6%, too. As to South Korea, the stocks kept going down. The lowest point neared 1332.85. The decreasing range was over 1%. Taiwanese stocks fell 7.29 points around 0.5%.
The tense international relationship makes the sense of avoiding-risks goes up. Not only JPY to a dollar goes over 109 but also the spot price of gold raised over 12 USD over 1320 USD. It finally stopped at 1322.74 USD. It is the highest point in the past 9 months. In addition, VIX Futures goes up as well while the Electronics in US and Europe goes down.
The missile from North Korea makes the situation in North East Asia turns nervous again. Japan and South Korea indicate to defense. Our advice is to observe the attitude and reactions of China and US. Using VIX ETF to operate the Avoiding-Risks Actions in short term.