In Tokyo, the dollar weakened to 108.36 yen from 108.91 yen in Asia trade on Friday. A stronger yen is generally bad for Japanese shares as it dents exporters’ profitability.
“Geopolitical risk will continue to be closely monitored today as a strapping US Navy Armada moves within striking distance of North Korea,” said Stephen Innes, senior trader at forex firm OANDA.
“With all the military adventurism in play, those insidious wartime market correlations take force as the risk-off theme grips markets.
“To what extent the markets need to price in geopolitical risk more actively into their psyche will likely drive nearer term sentiment.”