Summary Asian stock markets pushed higher in relief, with Tokyo gaining 1.4 percent
LONDON (AFP) - Stock markets rallied on Monday on receding concerns over North Korea and Hurricane Irma, analysts said.
After a robust start in Asian trading, equities moved higher in Europe and then on Wall Street.
"The lack of hostilities in relation to North Korea and the downgrading of Hurricane Irma to a category one storm has prompted traders to buy back into the market," said market analyst David Madden at CMC Markets UK.
Investors had been concerned that Pyongyang could use a Saturday holiday to launch another missile, as it has done in the past.
"Seeing as the North Korean regime didn t show off its military might over the weekend, traders were encouraged to take on more risk," added Madden.
Asian stock markets pushed higher in relief, with Tokyo gaining 1.4 percent.
The previous week saw a sell-off in risk assets sparked by Kim Jong-Un s nuclear test, in turn benefiting haven assets such as the yen and gold, which retreated Monday alongside a pick-up for the dollar.
European equities then took the baton, with both Frankfurt and Paris posting gains of more than 1.0 percent. London added 0.5 percent.
On Wall Street the Dow blew back above 22,000 points as killer Hurricane Irma struck Florida with less force than feared. Nevertheless Irma was still whipping parts of the Sunshine State with fearsome winds and rain, leaving 6.2 million people without power.
Solidly higher
"US equities are moving solidly higher in early action, with geopolitical concerns fading as North Korea held off on conducting another missile test, while early reports are suggesting downgraded Hurricane Irma s economic impact may be lower than feared, bolstering insurance stocks," said analysts at Charles Schwab brokerage.
In foreign exchange, the European single currency was trading down at $1.1979 compared with $1.2030 late in New York on Friday.
The euro on Friday reached $1.2092, the highest level since January 2015 as traders bet on the European Central Bank winding in its huge stimulus programme.
The pound meanwhile steadied Monday awaiting British MPs first vote on a bill to end Britain s membership of the EU.
The focus was now also on the UN Security Council, where Washington is pushing for a vote Monday on tough fresh sanctions against Pyongyang, despite resistance from China and Russia.
The greenback had come in for a pounding in recent weeks on waning expectations for further Federal Reserve interest rate rises and doubts about US President Donald Trump s chances of pushing through his market-friendly economic policies.
However, it bounced back on Monday, surging above 108 yen from Friday s 10-month lows.
On oil markets, US prices rose modestly after taking a beating Friday caused by Hurricane Irma threatening crude supplies.
Key US oil contract West Texas Intermediate sank 3.3 percent Friday while European benchmark Brent North Sea crude slid 1.3 percent in value.
Irma, which has toppled cranes, swallowed streets and left millions without power, was starting to weaken on Monday while still pummelling parts of Florida on its destructive march north.
Key figures around 1530 GMT
London - FTSE 100: UP 0.5 percent at 7,413.59 points (close)
Frankfurt - DAX 30: UP 1.4 percent at 12,475.24 (close)
Paris - CAC 40: UP 1.2 percent at 5,176.71 (close)
EURO STOXX 50: UP 1.3 percent at 3,491.83
New York - DOW: UP 1.0 percent at 22,018.72
Tokyo - Nikkei 225: UP 1.4 percent at 19,545.77 (close)
Hong Kong - Hang Seng: UP 1.0 percent at 27,955.13 (close)
Shanghai - Composite: UP 0.3 percent at 3,376.42 (close)
Euro/dollar: DOWN at $1.1979 from $1.2030 at 2115 GMT on Friday
Dollar/yen: UP at 108.97 yen from 107.83 yen
Pound/dollar: DOWN at $1.3179 from $1.3196
Oil - West Texas Intermediate: UP 19 cents at $47.67 per barrel
Oil - Brent North Sea: DOWN 26 cents at $53.52
