Stocks around the world fell sharply on Thursday and investors moved into the yen, gold and other safe-haven assets amid more aggressive talk between the United States and North Korea.

MSCI&#39;s gauge of stocks across the globe shed 0.77 per cent, on track for its third straight day of declines as it pulled further back from all-time highs.

The Japanese yen hit an eight-week high against the US&nbsp;dollar, while spot gold also reached a two-month high.

North Korea said it was completing plans to fire four intermediate-range missiles over Japan to land near the US Pacific island territory of Guam in an unusually detailed threat that further heightened tensions with the United States.

The rise in geopolitical tensions this week, which heightened after US President Donald Trump on Tuesday warned North Korea that it would face &quot;fire and fury&quot; if it threatened the United States, has drawn investor attention away from second-quarter corporate earnings season, which is winding down.

&quot;The story today is North Korea and there was nothing in the earnings that was bullish enough to pull people away from focusing on North Korea,&quot; said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana.

The Dow Jones Industrial Average fell 94.55 points, or 0.43 per cent, to 21,954.15, the S&amp;P 500 lost 19.51 points, or 0.79 per cent, to 2,454.51 and the Nasdaq Composite dropped 76.39 points, or 1.2 per cent, to 6,275.94.

Shares of US department stores Kohl&#39;s and Macy&#39;s were weak after their results.

The pan-European FTSEurofirst 300 index lost 1.19 per cent.

Shares of staffing firm Adecco slumped 6.4 per cent after its results.

In currencies, the yen strengthened 0.64 per cent versus the greenback at 109.37 per dollar.

&quot;The yen is the big story really. Risk aversion is still very much a concern for markets,&quot; said Shaun Osborne, chief currency strategist, at Scotiabank in Toronto.

The dollar index, which measures against a basket of currencies, fell 0.05 per cent.

The dollar weakened after news that US producer prices unexpectedly fell in July, recording their biggest drop in nearly a year and pointing to a further moderation in inflation that could delay a Federal Reserve interest rate increase.

US Treasury long-dated yields dropped to six-week lows, pressured by US-North Korea tensions and the weak data that further reduced expectations of an interest rate hike in December.

Benchmark 10-year notes last rose 5/32 in price to yield 2.2255 per cent, from 2.242 per cent late on Wednesday.

The 30-year bond last rose 5/32 in price to yield 2.8107 per cent, from 2.818 per cent late on Wednesday.

In commodities, US. crude fell 0.67 per cent to $49.23 per barrel and Brent was last at $52.58, down 0.23 per cent on the day.

Spot gold added 0.7 per cent to $1,285.70 an ounce.

&quot;For now, the uptrend is very much intact in gold, reacting to external geopolitical events,&quot; said Jonathan Butler, commodities analyst at Mitsubishi in London.

The Japanese yen hit an eight-week high against the US?dollar, while spot gold also reached a two-month high

Stocks around the world fell sharply on Thursday and investors moved into the yen, gold and other safe-haven assets amid more aggressive talk between the United States and North Korea. MSCI's gauge of stocks across the globe shed 0.77 per cent, on track for its third straight day of declines as it pulled further back from all-time highs. The Japanese yen hit an eight-week high against the US dollar, while spot gold also reached a two-month high. North Korea said it was completing plans to fire four intermediate-range missiles over Japan to land near the US Pacific island territory of Guam in an unusually detailed threat that further heightened tensions with the United States. The rise in geopolitical tensions this week, which heightened after US President Donald Trump on Tuesday warned North Korea that it would face "fire and fury" if it threatened the United States, has drawn investor attention away from second-quarter corporate earnings season, which is winding down. "The story today is North Korea and there was nothing in the earnings that was bullish enough to pull people away from focusing on North Korea," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. The Dow Jones Industrial Average fell 94.55 points, or 0.43 per cent, to 21,954.15, the S&P 500 lost 19.51 points, or 0.79 per cent, to 2,454.51 and the Nasdaq Composite dropped 76.39 points, or 1.2 per cent, to 6,275.94. Shares of US department stores Kohl's and Macy's were weak after their results. The pan-European FTSEurofirst 300 index lost 1.19 per cent. Shares of staffing firm Adecco slumped 6.4 per cent after its results. In currencies, the yen strengthened 0.64 per cent versus the greenback at 109.37 per dollar. "The yen is the big story really. Risk aversion is still very much a concern for markets," said Shaun Osborne, chief currency strategist, at Scotiabank in Toronto. The dollar index, which measures against a basket of currencies, fell 0.05 per cent. The dollar weakened after news that US producer prices unexpectedly fell in July, recording their biggest drop in nearly a year and pointing to a further moderation in inflation that could delay a Federal Reserve interest rate increase. US Treasury long-dated yields dropped to six-week lows, pressured by US-North Korea tensions and the weak data that further reduced expectations of an interest rate hike in December. Benchmark 10-year notes last rose 5/32 in price to yield 2.2255 per cent, from 2.242 per cent late on Wednesday. The 30-year bond last rose 5/32 in price to yield 2.8107 per cent, from 2.818 per cent late on Wednesday. In commodities, US. crude fell 0.67 per cent to $49.23 per barrel and Brent was last at $52.58, down 0.23 per cent on the day. Spot gold added 0.7 per cent to $1,285.70 an ounce. "For now, the uptrend is very much intact in gold, reacting to external geopolitical events," said Jonathan Butler, commodities analyst at Mitsubishi in London.

As North Korea rattle drags down stocks, value of gold and yen rise

Asian equity markets extended a global slide on Friday as tensions ramped up between the United States and North Korea, sending investors fleeing to less risky assets such the yen, the Swiss franc and US&nbsp;Treasuries.

Wall Street closed sharply lower after US&nbsp;President Donald Trump issued a new round of fiery rhetoric, warning Pyongyang against attacking Guam or US&nbsp;allies after it disclosed plans to fire missiles over Japan to land near the US&nbsp;Pacific territory.

MSCI&#39;s broadest index of Asia-Pacific shares outside Japan skidded 1.4 per cent in its third session of declines to a near one-month low, heading for a 2.1 per cent drop for the week.

Australian shares were down 1.3 per cent, set for a weekly loss of 0.5 per cent. Japanese markets were closed for a holiday.

&quot;What has changed this time is that the scary threats and war of words between the US&nbsp;and North Korea have intensified to the point that markets can&#39;t ignore it,&quot; said Shane Oliver, head of the investment strategy at AMP Capital in Sydney.

&quot;Of course it&#39;s all come at a time when share markets are due for a correction so North Korea has provided a perfect trigger.&quot;

Many markets have climbed to record or multi-year highs, leaving them vulnerable to a sell-off.

Trump took specific aim at North Korean leader Kim Jong Un on Thursday, saying he had &quot;disrespected our country greatly&quot; and would not be &quot;getting away with it.&quot;

South Korea&#39;s KOSPI fell 1.8 per cent to a 9 1/2-week low, taking its losses this week to nearly 2.7 per cent.

The Korean won also continued to skid, sliding 0.4 per cent to 1,146.2, below its 200-day moving average.

Chinese blue-chips lost 0.9 per cent, while Hong Kong&#39;s Hang Seng was 1.6 per cent lower.

If North Korea launches an attack that threatens the United States,&nbsp;then China should stay neutral, but if the United States attacks first and tries to overthrow North Korea&#39;s government China will stop them, a Chinese state-run newspaper said on Friday.

&quot;This situation is beginning to develop into this generation&#39;s Cuban Missile crisis moment, with recent leaked intelligence reports alleging that North Korea now has miniaturised its nuclear warheads, which extends the range of its missiles, and potentially brings US&nbsp;targets into reach,&quot; ING&#39;s chief Asia economist Robert Carnell said in a research note on Friday.

&quot;While the US&nbsp;President insists on ramping up the war of words, there is a decreasing chance of any diplomatic solution,&quot; Carnell said.

Trump&#39;s threat earlier this week, to unleash &quot;fire and fury&quot; on Pyongyang if it attacked, was ultimately dismissed as bluster by many investors.

Trump&#39;s second warning, however, has shaken markets that have been largely resilient this year, swatting away a slew of risks. These have ranged from an investigation into Russia&#39;s possible interference in the 2016 US&nbsp;presidential election, to concerns about China&#39;s risky debt levels, to stubbornly low inflation in the US.

The CBOE Volatility Index, the most widely followed barometer of expected near-term US&nbsp;stock market volatility, rose the most in about 12 weeks. The index closed at 16.04 overnight, the highest level since Nov. 8, when Trump was elected president.

The Chinese volatility gauge jumped by the most since January 2016. It was at its highest level in more than seven months.

On Wall Street overnight, the Nasdaq retreated 2.1 per cent, while the S&amp;P 500 was down 1.4 per cent, and the Dow Jones Industrial Average pulled back 0.9 per cent.[.N]

US&nbsp;stock futures were 0.1 per cent lower on Friday.

The MSCI World index slipped 0.1 per cent, extending Thursday&#39;s 1.1 per cent drop, its biggest one-day slide since May 17, hurt by the escalating US-North Korea tensions.

The dollar extended losses against the yen to hit a new two-month low. It was down 0.2 per cent at 108.96 yen, after retreating 0.7 per cent on Thursday.

The yen is perceived as a safe haven because Japan is the world&#39;s biggest creditor country and investors there have tended to repatriate funds in times of crisis.

Low US&nbsp;Treasury yields are also weighing on the dollar. The yield on the benchmark 10-year Treasury fell as low as 2.197 per cent, its lowest level since June 28, before inching back to 2.201 per cent.

The dollar pulled back 0.1 per cent to $0.9635 Swiss francs on Friday, after dropping as much as 1.2 per cent to a two-week low overnight.

The dollar was steady against a basket of six major currencies at 93.385 after falling 0.2 per cent on Thursday, with disappointing US&nbsp;inflation and jobs data adding to the greenback&#39;s woes.

US&nbsp;producer prices unexpectedly fell in July, recording their biggest drop in nearly a year, while another set showed the number of Americans filing for unemployment benefits unexpectedly rose last week.

Markets are now focused on US&nbsp;consumer price data for July, due later in the session.

Spot gold prices were unchanged at $1,286.27 an ounce, after touching a two-month high earlier. They have soared over 2 per cent in the previous two sessions, and are set for a weekly gain of 2.26 per cent.

US&nbsp;crude futures extended losses from Thursday when they tumbled 2 per cent on fears of slowing demand and lingering concerns over a global oversupply.

They were down 0.7 per cent at $48.24 per barrel, on track for a weekly loss of 2.7 per cent.

Global benchmark Brent lost 0.7 per cent to $51.53, after Thursday&#39;s 1.5 per cent drop. It is poised to end the week down 1.7 per cent.

Wall Street closed sharply lower after US?President Donald Trump issued a new round of fiery rhetoric, warning Pyongyang against attacking Guam or US?allies after it disclosed plans to fire missiles over Japan to land near the US?Pacific territory

Asian equity markets extended a global slide on Friday as tensions ramped up between the United States and North Korea, sending investors fleeing to less risky assets such the yen, the Swiss franc and US Treasuries. Wall Street closed sharply lower after US President Donald Trump issued a new round of fiery rhetoric, warning Pyongyang against attacking Guam or US allies after it disclosed plans to fire missiles over Japan to land near the US Pacific territory. MSCI's broadest index of Asia-Pacific shares outside Japan skidded 1.4 per cent in its third session of declines to a near one-month low, heading for a 2.1 per cent drop for the week. Australian shares were down 1.3 per cent, set for a weekly loss of 0.5 per cent. Japanese markets were closed for a holiday. "What has changed this time is that the scary threats and war of words between the US and North Korea have intensified to the point that markets can't ignore it," said Shane Oliver, head of the investment strategy at AMP Capital in Sydney. "Of course it's all come at a time when share markets are due for a correction so North Korea has provided a perfect trigger." Many markets have climbed to record or multi-year highs, leaving them vulnerable to a sell-off. Trump took specific aim at North Korean leader Kim Jong Un on Thursday, saying he had "disrespected our country greatly" and would not be "getting away with it." South Korea's KOSPI fell 1.8 per cent to a 9 1/2-week low, taking its losses this week to nearly 2.7 per cent. The Korean won also continued to skid, sliding 0.4 per cent to 1,146.2, below its 200-day moving average. Chinese blue-chips lost 0.9 per cent, while Hong Kong's Hang Seng was 1.6 per cent lower. If North Korea launches an attack that threatens the United States, then China should stay neutral, but if the United States attacks first and tries to overthrow North Korea's government China will stop them, a Chinese state-run newspaper said on Friday. "This situation is beginning to develop into this generation's Cuban Missile crisis moment, with recent leaked intelligence reports alleging that North Korea now has miniaturised its nuclear warheads, which extends the range of its missiles, and potentially brings US targets into reach," ING's chief Asia economist Robert Carnell said in a research note on Friday. "While the US President insists on ramping up the war of words, there is a decreasing chance of any diplomatic solution," Carnell said. Trump's threat earlier this week, to unleash "fire and fury" on Pyongyang if it attacked, was ultimately dismissed as bluster by many investors. Trump's second warning, however, has shaken markets that have been largely resilient this year, swatting away a slew of risks. These have ranged from an investigation into Russia's possible interference in the 2016 US presidential election, to concerns about China's risky debt levels, to stubbornly low inflation in the US. The CBOE Volatility Index, the most widely followed barometer of expected near-term US stock market volatility, rose the most in about 12 weeks. The index closed at 16.04 overnight, the highest level since Nov. 8, when Trump was elected president. The Chinese volatility gauge jumped by the most since January 2016. It was at its highest level in more than seven months. On Wall Street overnight, the Nasdaq retreated 2.1 per cent, while the S&P 500 was down 1.4 per cent, and the Dow Jones Industrial Average pulled back 0.9 per cent.[.N] US stock futures were 0.1 per cent lower on Friday. The MSCI World index slipped 0.1 per cent, extending Thursday's 1.1 per cent drop, its biggest one-day slide since May 17, hurt by the escalating US-North Korea tensions. The dollar extended losses against the yen to hit a new two-month low. It was down 0.2 per cent at 108.96 yen, after retreating 0.7 per cent on Thursday. The yen is perceived as a safe haven because Japan is the world's biggest creditor country and investors there have tended to repatriate funds in times of crisis. Low US Treasury yields are also weighing on the dollar. The yield on the benchmark 10-year Treasury fell as low as 2.197 per cent, its lowest level since June 28, before inching back to 2.201 per cent. The dollar pulled back 0.1 per cent to $0.9635 Swiss francs on Friday, after dropping as much as 1.2 per cent to a two-week low overnight. The dollar was steady against a basket of six major currencies at 93.385 after falling 0.2 per cent on Thursday, with disappointing US inflation and jobs data adding to the greenback's woes. US producer prices unexpectedly fell in July, recording their biggest drop in nearly a year, while another set showed the number of Americans filing for unemployment benefits unexpectedly rose last week. Markets are now focused on US consumer price data for July, due later in the session. Spot gold prices were unchanged at $1,286.27 an ounce, after touching a two-month high earlier. They have soared over 2 per cent in the previous two sessions, and are set for a weekly gain of 2.26 per cent. US crude futures extended losses from Thursday when they tumbled 2 per cent on fears of slowing demand and lingering concerns over a global oversupply. They were down 0.7 per cent at $48.24 per barrel, on track for a weekly loss of 2.7 per cent. Global benchmark Brent lost 0.7 per cent to $51.53, after Thursday's 1.5 per cent drop. It is poised to end the week down 1.7 per cent.

Global stocks, dollar extend slide as tensions between US-North Korea escalate

The Nikkei slumped to its lowest close for almost three months Wednesday, leading an Asia-wide sell-off sparked by President Donald Trump&#39;s apocalyptic warning over North Korea&#39;s weapons programme.&nbsp;

Escalating tensions around Pyongyang&#39;s nuclear ambitions sent a shiver through markets worldwide and pushed the dollar to below 109.7 yen in afternoon forex trade to an eight-week low against the safe haven currency, piling more pressure on Japanese stocks.&nbsp;

Tokyo&#39;s blue-chip index tumbled 1.3 per cent to its lowest close since late May after the Dow&#39;s winning streak of nine straight records ended following Trump&#39;s sharp rhetoric of &quot;fire and fury&quot;, with the main European bourses also opening lower Wednesday. &nbsp;

Hong Kong and Shanghai followed Tokyo into the red, as China factory gate inflation came in slightly below forecast amid warnings from experts of a further slowdown in the world&#39;s second-largest economy.&nbsp;

Stocks ended more than one per cent down in Seoul while the won slumped to a three-week low against the dollar as the US president and South Korea&#39;s volatile neighbour dramatically ramped up their war of words.

Tensions spiked yet further when North Korean state media later said Pyongyang was considering strikes near US military installations in Guam.

But analysts said equities had also fallen as investors took profits.&nbsp;

&quot;North Korea is being used as a reason to sell Japanese stocks, just as it was used yesterday in the US,&quot; said Soichiro Monji from Daiwa SB Investments in Tokyo.

&quot;Japanese equities hadn&#39;t been rising much despite positive earnings results, so investors had started jumping at shadows, doubting whether they should really be holdings onto Japanese stocks.&quot;

US equities had been on track for a 10th-straight record session Tuesday and the dollar was initially up after the JOLTS survey showed job openings hit a record in the US last month.

Greg McKenna, an analyst at AxiTrader, said the data could bolster the Federal Reserve&#39;s plan to start winding in its multi-trillion-dollar bond holdings balance sheet, expected to be announced next month.&nbsp;

&quot;This is Janet Yellen&#39;s favoured labour market indicator and could reinforce Yellen and her colleagues about the path they have set for policy normalisation,&quot; he said.

The positive data also bolstered the greenback against the euro and the pound Wednesday. &nbsp;&nbsp;

Sydney was a rare bright spot in Asia-Pacific with stocks closing 0.4 per cent up as Australia&#39;s biggest bank posted record annual profits.

The Commonwealth Bank of Australia&#39;s profits are closely watched and the results provide a guidance on the health of the country&#39;s economy as it transitions away from a dependence on mining.

In commodities trading, US crude oil was wallowing around $49 to the barrel amid speculation that a predicted gain in American output will offset OPEC-led efforts to trim a global glut.

Chris Weston, chief market strategist at IG Markets, said signals around oil production were &quot;messy&quot;.

The US Energy Information Administration raised its 2017 and 2018 US crude output estimates to 9.9 million and 9.33 million barrels a day respectively, Weston said, but &quot;on the other hand, we are hearing the UAE, Kazakhstan and Iraq will fully comply with the OPEC agreement&quot; to cut oversupply.

Escalating tensions around Pyongyang's nuclear ambitions sent a shiver through markets worldwide

The Nikkei slumped to its lowest close for almost three months Wednesday, leading an Asia-wide sell-off sparked by President Donald Trump's apocalyptic warning over North Korea's weapons programme. Escalating tensions around Pyongyang's nuclear ambitions sent a shiver through markets worldwide and pushed the dollar to below 109.7 yen in afternoon forex trade to an eight-week low against the safe haven currency, piling more pressure on Japanese stocks. Tokyo's blue-chip index tumbled 1.3 per cent to its lowest close since late May after the Dow's winning streak of nine straight records ended following Trump's sharp rhetoric of "fire and fury", with the main European bourses also opening lower Wednesday. Hong Kong and Shanghai followed Tokyo into the red, as China factory gate inflation came in slightly below forecast amid warnings from experts of a further slowdown in the world's second-largest economy. Stocks ended more than one per cent down in Seoul while the won slumped to a three-week low against the dollar as the US president and South Korea's volatile neighbour dramatically ramped up their war of words. Tensions spiked yet further when North Korean state media later said Pyongyang was considering strikes near US military installations in Guam. But analysts said equities had also fallen as investors took profits. "North Korea is being used as a reason to sell Japanese stocks, just as it was used yesterday in the US," said Soichiro Monji from Daiwa SB Investments in Tokyo. "Japanese equities hadn't been rising much despite positive earnings results, so investors had started jumping at shadows, doubting whether they should really be holdings onto Japanese stocks." US equities had been on track for a 10th-straight record session Tuesday and the dollar was initially up after the JOLTS survey showed job openings hit a record in the US last month. Greg McKenna, an analyst at AxiTrader, said the data could bolster the Federal Reserve's plan to start winding in its multi-trillion-dollar bond holdings balance sheet, expected to be announced next month. "This is Janet Yellen's favoured labour market indicator and could reinforce Yellen and her colleagues about the path they have set for policy normalisation," he said. The positive data also bolstered the greenback against the euro and the pound Wednesday. Sydney was a rare bright spot in Asia-Pacific with stocks closing 0.4 per cent up as Australia's biggest bank posted record annual profits. The Commonwealth Bank of Australia's profits are closely watched and the results provide a guidance on the health of the country's economy as it transitions away from a dependence on mining. In commodities trading, US crude oil was wallowing around $49 to the barrel amid speculation that a predicted gain in American output will offset OPEC-led efforts to trim a global glut. Chris Weston, chief market strategist at IG Markets, said signals around oil production were "messy". The US Energy Information Administration raised its 2017 and 2018 US crude output estimates to 9.9 million and 9.33 million barrels a day respectively, Weston said, but "on the other hand, we are hearing the UAE, Kazakhstan and Iraq will fully comply with the OPEC agreement" to cut oversupply.

Dollar slumps, Tokyo tanks as North Korea tensions spike

Chinese President Xi Jinping called for a peaceful resolution of rising tension on the Korean peninsula in a telephone conversation with US&nbsp;President Donald Trump on Wednesday, as a US&nbsp;aircraft carrier strike group steamed towards the region.

Trump said on Twitter that his call with Xi, just days after they met in the United States for the first time, was a &quot;very good&quot; discussion of the &quot;menace of North Korea&quot;.

He praised China at a later news conference for sending coal ships back to North Korea under UN&nbsp;sanctions and said he thought Xi wanted to help.

&quot;We&#39;ll see whether or not he does,&quot; Trump said. &quot;Otherwise we&rsquo;re just going to go it alone; that&rsquo;ll be all right too, but going it alone means going with lots of other nations.&quot;

The Trump-Xi call came as an influential state-run Chinese newspaper warned that the Korean peninsula was the closest it has been to a &quot;military clash&quot; since North Korea&#39;s first nuclear test in 2006.

The call underscored a sense of urgency given concerns that North Korea could soon conduct a sixth nuclear test or more missile launches in defiance of UN&nbsp;sanctions, and over Trump&#39;s threat of unilateral action to solve the problem.

At the weekend, Trump ordered the USS Carl Vinson aircraft carrier strike group to head to the Korean peninsula in a show of force aimed at deterring North Korea.

Pyongyang warned on Tuesday of a nuclear attack on the United States at any sign of American aggression. It remains technically at war with the United States and South Korea after the 1950-1953 Korean conflict ended in a truce, not a peace treaty, and regularly threatens to destroy both countries.

Trump pressed Xi to do more to curb North Korea&#39;s nuclear programme when the two leaders held their first face-to-face meeting in Florida last week. He said on Tuesday that North Korea was &quot;looking for trouble&quot; and Washington would &quot;solve the problem&quot; with or without China&#39;s help.

In spite of the rhetoric, US&nbsp;officials have stressed that stronger sanctions are the most likely US&nbsp;course to press North Korea to abandon its nuclear programme.

At the same time Washington has said all options, including military ones, are on the table and that a US&nbsp;strike last week against Syria should serve as a warning to Pyongyang. L1N1HH0EC]

Xi stressed in the call with Trump that China was &quot;committed to the target of denuclearisation on the peninsula, safeguarding peace and stability on the peninsula, and advocates resolving problems through peaceful means&quot;, Chinese state broadcaster CCTV said.

Chinese Foreign Ministry spokesman Lu Kang, who said Trump had initiated the call, urged everyone to lower the tension.

&quot;We hope that the relevant parties do not adopt irresponsible actions. Under the current circumstances, this is very dangerous,&quot; Lu told reporters at a regular press briefing.

China&#39;s Global Times newspaper said North Korea should halt any plan for nuclear and missile activities &quot;for its own security&quot;, while noting Trump&#39;s recent decision to launch 59 Tomahawk missiles at a Syrian airfield in response to a deadly gas attack last week.

&quot;Not only is Washington brimming with confidence and arrogance following the missile attacks on Syria, but Trump is also willing to be regarded as a man who honours his promises,&quot; it said in an editorial.

&quot;The US&nbsp;is making up its mind to stop the North from conducting further nuclear tests. It doesn&#39;t plan to co-exist with a nuclear-armed Pyongyang,&quot; it said. &quot;Pyongyang should avoid making mistakes at this time.&quot;

While widely read in China and run by the ruling Communist Party&#39;s official People&#39;s Daily, the Global Times does not represent government policy.

The paper said if North Korea made another provocative move, &quot;Chinese society&quot; might be willing to back unprecedented sanctions, &quot;such as restricting oil imports&quot;.

&#39;Not afraid&#39;

North Korea is working to develop nuclear-tipped missiles capable of hitting the United States and officials, including leader Kim Jong Un, have indicated an intercontinental ballistic missile test or something similar could be coming.

Saturday will be the 105th anniversary of the birth of North Korea&#39;s founding president Kim Il Sung, the grandfather of the current leader. North Korea launched a long-range rocket carrying a satellite on April 13, 2012, to mark the centenary of his birth.

In Pyongyang residents thronged boulevards on a sunny spring morning, some practising for a parade to be held at the weekend, with no visible sign of the tension.

&quot;So long as we are with our supreme leader Marshall Kim Jong Un we are not afraid of anything,&quot; a woman who gave her name as Ri Hyon Sim told Reuters journalists, who were escorted by North Korean officials.

Earlier on Wednesday, two sources in Tokyo said Japan&#39;s navy planned exercises with the Carl Vinson carrier group in a joint show of force that could involve helicopter landings on each other&#39;s ships, as well as communication drills.

A senior Japanese diplomat said it appeared Washington was seeking to press North Korea to reach a peaceful solution to the crisis.

&quot;If you consider overall things such as the fact that the US&nbsp;government has not put out warnings to its citizens in South Korea, I think the risk at this point is not high,&quot; said the diplomat, who declined to be identified.

China&#39;s Defence Ministry, meanwhile, dismissed foreign media reports about a build-up of Chinese troops on its border with North Korea as &quot;pure fabrication&quot;.

(Reuters)

The call underscored a sense of urgency given concerns that North Korea could soon conduct a sixth nuclear test in defiance of UN sanctions

Chinese President Xi Jinping called for a peaceful resolution of rising tension on the Korean peninsula in a telephone conversation with US President Donald Trump on Wednesday, as a US aircraft carrier strike group steamed towards the region. Trump said on Twitter that his call with Xi, just days after they met in the United States for the first time, was a "very good" discussion of the "menace of North Korea". He praised China at a later news conference for sending coal ships back to North Korea under UN sanctions and said he thought Xi wanted to help. "We'll see whether or not he does," Trump said. "Otherwise we’re just going to go it alone; that’ll be all right too, but going it alone means going with lots of other nations." The Trump-Xi call came as an influential state-run Chinese newspaper warned that the Korean peninsula was the closest it has been to a "military clash" since North Korea's first nuclear test in 2006. The call underscored a sense of urgency given concerns that North Korea could soon conduct a sixth nuclear test or more missile launches in defiance of UN sanctions, and over Trump's threat of unilateral action to solve the problem. At the weekend, Trump ordered the USS Carl Vinson aircraft carrier strike group to head to the Korean peninsula in a show of force aimed at deterring North Korea. Pyongyang warned on Tuesday of a nuclear attack on the United States at any sign of American aggression. It remains technically at war with the United States and South Korea after the 1950-1953 Korean conflict ended in a truce, not a peace treaty, and regularly threatens to destroy both countries. Trump pressed Xi to do more to curb North Korea's nuclear programme when the two leaders held their first face-to-face meeting in Florida last week. He said on Tuesday that North Korea was "looking for trouble" and Washington would "solve the problem" with or without China's help. In spite of the rhetoric, US officials have stressed that stronger sanctions are the most likely US course to press North Korea to abandon its nuclear programme. At the same time Washington has said all options, including military ones, are on the table and that a US strike last week against Syria should serve as a warning to Pyongyang. L1N1HH0EC] Xi stressed in the call with Trump that China was "committed to the target of denuclearisation on the peninsula, safeguarding peace and stability on the peninsula, and advocates resolving problems through peaceful means", Chinese state broadcaster CCTV said. Chinese Foreign Ministry spokesman Lu Kang, who said Trump had initiated the call, urged everyone to lower the tension. "We hope that the relevant parties do not adopt irresponsible actions. Under the current circumstances, this is very dangerous," Lu told reporters at a regular press briefing. China's Global Times newspaper said North Korea should halt any plan for nuclear and missile activities "for its own security", while noting Trump's recent decision to launch 59 Tomahawk missiles at a Syrian airfield in response to a deadly gas attack last week. "Not only is Washington brimming with confidence and arrogance following the missile attacks on Syria, but Trump is also willing to be regarded as a man who honours his promises," it said in an editorial. "The US is making up its mind to stop the North from conducting further nuclear tests. It doesn't plan to co-exist with a nuclear-armed Pyongyang," it said. "Pyongyang should avoid making mistakes at this time." While widely read in China and run by the ruling Communist Party's official People's Daily, the Global Times does not represent government policy. The paper said if North Korea made another provocative move, "Chinese society" might be willing to back unprecedented sanctions, "such as restricting oil imports". 'Not afraid' North Korea is working to develop nuclear-tipped missiles capable of hitting the United States and officials, including leader Kim Jong Un, have indicated an intercontinental ballistic missile test or something similar could be coming. Saturday will be the 105th anniversary of the birth of North Korea's founding president Kim Il Sung, the grandfather of the current leader. North Korea launched a long-range rocket carrying a satellite on April 13, 2012, to mark the centenary of his birth. In Pyongyang residents thronged boulevards on a sunny spring morning, some practising for a parade to be held at the weekend, with no visible sign of the tension. "So long as we are with our supreme leader Marshall Kim Jong Un we are not afraid of anything," a woman who gave her name as Ri Hyon Sim told Reuters journalists, who were escorted by North Korean officials. Earlier on Wednesday, two sources in Tokyo said Japan's navy planned exercises with the Carl Vinson carrier group in a joint show of force that could involve helicopter landings on each other's ships, as well as communication drills. A senior Japanese diplomat said it appeared Washington was seeking to press North Korea to reach a peaceful solution to the crisis. "If you consider overall things such as the fact that the US government has not put out warnings to its citizens in South Korea, I think the risk at this point is not high," said the diplomat, who declined to be identified. China's Defence Ministry, meanwhile, dismissed foreign media reports about a build-up of Chinese troops on its border with North Korea as "pure fabrication". (Reuters)

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