Asian shares extended Monday’s gains in early Tuesday trade after North Korea’s leader Kim Jong Un hinted that he would push off plans to fire a missile near Guam. The statement seems to have settled the market even though it’s not a definitive cancellation of North Korea’s missile firing. On Monday U.S. stocks bounced back from last week’s selloff during which nearly $1 trillion in value was erased from equity markets. The selloff was attributed largely to the continued tensions between the United States and North Korea.
Currency markets were largely flat by the middle of Tuesday’s Asian trading session. The dollar was up 0.58 percent against the yen at 1 p.m. HK/SIN, to 110.26 yen. The dollar showed no significant movement against the euro, the pound or the Canadian dollar. The dollar index which measures the dollar against a basket of currencies was up a modest 0.06 percent to 93.52 .DXY at midday on Tuesday.
Oil prices searched for stability on Tuesday after falling to near three-week lows on Monday. Brent crude futures were up 0.12 percent to $50.79 per barrel and U.S. WTI futures were up 0.06 percent to $47.61 per barrel. Oil prices plummeted over 2.5 percent on Monday as demands concerns in China caused traders to become skittish. In July 2017, Chinese oil refineries operated at their lowest daily rates since September 2016, data out on Monday showed. Analysts noted that the drop was more than expected and that a dearth of refined fuel products could weaken Chinese demand for oil.