World shares, dollar rise after week of North Korea-driven losses

STOCK MARKET - World stocks rose on Monday, attempting to recover after fears of a U.S.-North Korea nuclear standoff drove them to the biggest weekly losses of 2017, while the dollar too rose off four-month lows it had hit against the yen.

European shares bounced after falling nearly 3 percent last week, with the pan-European STOXX 600 up 0.7 percent following on from a 0.9 percent jump in MSCI's index of Asia-Pacific shares outside Japan.
Those gains were led by bounces in Australia, Hong Kong and South Korea while MSCI's world index rose 0.2 percent.

U.S. stock futures rose 0.6 percent, suggesting a higher open later in the day.

"The risk aversion has stabilised and investors have gotten used to the North Korea situation a little bit - as long as it doesn't escalate further," said Daniel Lenz, a strategist at DZ Bank in Frankfurt.

Last week's losses - and yen gains - were sparked by a war of words between Pyongyang and Washington after U.S. President Donald Trump warned North Korea it would face "fire and fury" if it threatened the United States .

That prompted North Korea to say it was considering plans to fire missiles at the U.S.-held Pacific island of Guam.

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