Asian shares wilt, yen firms as Korean tensions rise

Asian shares withered on Tuesday and the yen firmed against the backdrop of rising tensions on the Korean Peninsula, and as investors awaited fresh signals about the U.S. monetary policy outlook.

Futures suggested a subdued start to the European trading day, with the Eurostoxx 50 and FTSE futures both down 0.1 percent and DAX futures down 0.2 percent 

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.6 percent, following tech-focused losses on Wall Street. 

The risk-averse mood increased the appeal of safe-haven government debt, with the yield on benchmark 10-year Treasury notes edging down to 2.218 percent from its U.S. close on Monday of 2.220 percent. 

Federal Reserve Chair Janet Yellen is scheduled to speak later on Tuesday (1645 GMT) on “Prospects for Growth: Reassessing the Fundamentals”. 

Investors will be parsing her words for clues on whether the U.S. central bank will stick to its plan to raise interest rates in December. 

Australian shares were down 0.2 percent, while South Korean shares slid 0.3 percent. 

Japan’s Nikkei stock index finished 0.3 percent lower, pressured by a stronger yen. 

Apple Inc shed 0.9 percent on Monday after it was reported the company had told suppliers to scale back shipments of parts for its upcoming iPhone X.