World Economy

Global Stocks Mostly Lower After N. Korea Launches Missiles

A trader works on the floor of the New York Stock Exchange in New York.
A trader works on the floor of the New York Stock Exchange in New York.

Global stocks mostly fell Monday following North Korea’s launch of missiles into seas near Japan, although Chinese share benchmarks rose on optimism about the economic outlook.

France’s CAC 40 slipped 0.4% to 4,973 while Britain’s FTSE 100 lost 0.3% to 7,350. Germany’s DAX fell 0.4% to 11,979, with Deutsche Bank leading the drop—its shares were down 6% after it said over the weekend that it was raising €8.5 billion in capital. US shares were set to drift lower, with Dow futures down 0.1% and S&P 500 futures down 0.3%, AP reported.

Shares in French automaker PSA Group were up 3% after it struck a deal to buy the European business of General Motors. While the operations are loss-making, they will expand PSA’s market share, making it the second-largest European car company behind Volkswagen. Analysts say it will have to trim costs, though it has committed to honoring current investment plans in plants and jobs.

South Korean and Japanese officials said North Korea fired four banned ballistic missiles that flew about 1,000 kilometers (620 miles) before falling into seas off Japan, in an apparent reaction to huge military drills by Washington and Seoul that Pyongyang insists are a rehearsal for an invasion. It was not immediately clear what type of missile was fired. Japanese leaders see the launches into nearby waters as a growing threat.

Japan’s Nikkei 225 stock index fell 0.5% to finish at 19,379.14. The Kospi in South Korea was little changed, gaining 0.1% to 2,081.36. Hong Kong’s Hang Seng index added 0.2% to 23,596.28 and the Shanghai Composite index advanced 0.5% to 3,233.87. Australia’s S&P ASX/200 rose 0.3% to 5,746.50. Shares in Taiwan rose while markets in Southeast Asia were mixed.

Benchmark US crude lost 38 cents to $52.95 a barrel in electronic trading on the New York Mercantile Exchange. It gained 72 cents on Friday. Brent crude, used to price international oils, shed 39 cents to $55.51 a barrel after adding 82 cents on Friday.

The dollar fell to 113.81 yen from 114.03 yen. The euro dropped to $1.058 from $1.062.

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