Turkelson says even though South Koreans are concerned about the tension and threats of violence, they're going about their daily lives, business as usual.
It had retreated to trade nearly flat on the day at 109.17 yen per dollar by 0711 GMT but was still 0.2 percent stronger against the euro at 128.28 yen. -North Korea tensions and the weak data that further reduced expectations of a Fed rate hike in December.
The Dow Jones Industrial Average .DJI fell 204.69 points, or 0.93 percent, to close at 21,844.01, the S&P 500 .SPX lost 35.81 points, or 1.45 percent, to 2,438.21 and the Nasdaq Composite .IXIC dropped 135.46 points, or 2.13 percent, to 6,216.87.
Travel website operator Priceline fell 7.26 percent, weighing the most on the S&P and the Nasdaq, following a disappointing forecast.
Women walk past an electronic stock board showing indexes of Japan's Nikkei 225, top right, and other countries at a securities firm in Tokyo Thursday, Aug. 10, 2017.
Emerging market stocks lost 0.89 percent.
However, the classic safe-haven asset gold rose again yesterday to around $1,278 an ounce after surging 1.3 per cent Wednesday as investors reacted with dismay to the deepening crisis.
US Stock Futures Pull Back As North Korea Threatens Guam
"Obviously we are looking at the increased tensions between the USA and North Korea", said Brad Bechtel, managing director FX at Jefferies in NY.
This may explain why financial markets have adopted a safety first approach to events over the last twelve hours, as government bonds push higher and the Swiss franc, gold and the yen catch a bid. "Safe-havens are bid and markets are a little uneasy". The 10-year German bund yield traded at 0.426 percent while the 10-year US yield declined to 2.24 percent. The Swiss franc, meanwhile, looked set for its biggest one-day rise in more than two years.
While the German DAX Index has inched up by 0.1 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index are down by 0.9 percent and 1 percent, respectively.
When Japanese traders get back to their desks Monday, stocks will need to catch up with Friday's regional weakness and the yen's recent gains against the dollar.
It was 0.2 percent lower at 1.1310 francs, compared with highs of 1.1537 francs hit a week ago.
Benchmark U.S. 10-year notes rose 9/32 in price to yield 2.2494 percent, from 2.282 percent late on Tuesday.
As of Friday, calendar second-quarter earnings have grown by 10.1 percent.
"Trump's comments about North Korea have created nervousness and the fear is if the President really means what he said: "fire and fury", said Naeem Aslam, chief market analyst at Think Markets in London. Brent crude, used to price worldwide oils, added 4 cents to $52.74.