Tensions spiked yet further when North Korean state media later said Pyongyang was considering strikes near U.S. military installations in Guam.
In the USA, major indexes closed slightly lower as investors digested geopolitical tensions, with the Dow Jones industrial average sliding 0.17 percent to close at 22,048.70.
Crude oil prices tumbled on the back of the selloff on Wall Street and lingering concerns over global oversupply.
Rising geopolitical tensions were heightened further when U.S. President Donald Trump warned Pyongyang it should be "very, very nervous" if it even thinks about attacking the United States or its allies, after Pyongyang said it was making plans to fire missiles over Japan to land near the U.S. Pacific territory of Guam.
The Japanese market was closed in observance of the Mountain Day holiday.
But U.S. stocks regained some lost ground, despite Trump's comments Friday that U.S. weapons are "locked and loaded", ready to respond if North Korea acts "unwisely".
CURRENCIES: The dollar slipped to 109.78 yen from 110.06 late Wednesday in Asia.
Investors instead turned to safe-haven assets such as gold, pushing it to a two-month high, and the Japanese yen rose.
Mike van Dulken, head of research at Accendo Markets, said: "Equities are nursing losses thanks to an unwelcome escalation in geopolitical tensions between the United States and North Korea, both trading nuclear threats that have awoken volatility from its slumber and seen risk assets shunned in favour of the traditional safe havens". Shares of Macy's lost almost 10% and Kohl's fell 6.9%.
A glance at the third round of the PGA Championship
Jordan Spieth and Rory McIlroy finished their second rounds in the near dark to ensure an early start wasn't required on Saturday. The Saturday of any tournament is universally known as the moving day, with Day proving that conclusively this morning.
In Australia, the S&P/ASX 200 advanced 0.41 percent, with the index driven by broad-based gains, with only the energy and utilities sub-indexes registering slight losses. Hong Kong's Hang Seng Index plummeted 560.49 points or 2% to 26,883.51. "What's happened in North Korea is enough to do that".
Inflation has risen 1.7 percent over the past 12 months, suggesting that inflation pressures remain well under control.
While the German DAX Index has edged down by 0.1%, the French CAC 40 Index and the UK's FTSE 100 Index are both down by 1%.
Data overnight from China showed that China's producer price gains held steady on surging commodity prices, as demand stayed resilient and the government's drive to reduce industrial capacity takes hold.
A Labour Department report showed its producer price index posted a surprise drop in July, down 0.1 percent for the largest slide in nearly a year.
"Investors tend to be more cautious ahead of economic data, especially when the prices are high".
Shares of Blue Apron Holdings fell 17% after it said it lost more money than analysts had expected in its first quarterly earnings report since going public in June.
Kohl's, another department store chain, slumped 8.9 percent after reporting that second-quarter sales dipped 0.9 percent compared with the year-ago period.
A limited supply of free eclipse glasses are also available from the Brookings Public Library (limit two per family). Unfortunately, numerous solar glasses available online may be counterfeit or do not meet safety specifications.
Trump made no reply to a reporter's shouted question whether he had spoken out strongly enough against white nationalists. President - we must call evil by its name". "I am heartbroken that a life has been lost here", said Singer on Twitter .
En este sentido, las autoridades argentinas consideran que esta condecoración debe ser otorgada "exclusivamente" a dirigentes que, "en el ejercicio de sus funciones, merezcan en alto grado el honor y reconocimiento de la República".
Finally, Principal Financial Group Inc. bought a new position in Triumph Bancorp during the second quarter worth $218,000. Russell Investments Group Ltd. purchased a new position in Cadence Bancorp during the second quarter valued at $198,000.
En finale dimanche, deux générations du tennis vont s'affronter mais pour Federer - 36 ans depuis mardi -, l'objectif est clair. Actuellement au 143e rang, Shapovalov deviendra le plus jeune joueur dans le top 100 du circuit professionnel.
A search and rescue operation is on involving local authorities, the Army and the National Disaster Response Force. Himachal Transport minister GS Bali said the toll could climb to 50 in the incident which took place last night.
India has protested the move, saying China was unilaterally changing the status quo at the trijunction with Bhutan. From Pakistan, Wang would head to Nepal, Chinese foreign ministry spokesperson Geng Shuang announced in Beijing.
Jets trying to build Christian Hackenberg's confidence
The kid's got to get a chance to play and make some mistakes and grow from it and come back from adversity and make good plays. All in all, considering the lack of talent on the field with Hackenberg, it was an inconclusive game.
Highlights of Saturday's third round at the PGA Championship
Scott is skipping the first two playoffs events to be with wife Marie as the couple welcome their second child due on August 19. But the last two weeks his putting has looked stronger with only 54 total putts thus far in the PGA Championship .
Military option for Venezuela on the table
"As Minister of Defense and as a citizen I say this is a insane act, an act of supreme extremism", CNN quoted Padrino as saying. Venezuela was "a mess, a very risky mess and a sad situation", Trump said, adding that people there were suffering and dying.
Cuts Position in AMERISAFE, Inc. (AMSF)
The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link . Finally, Norges Bank bought a new position in shares of AMERISAFE during the fourth quarter valued at approximately $10,326,000.
HSBC Upgrades Rating On Royal Bank of Scotland Group Pl (RBS)
HPM Partners LLC purchased a new stake in shares of Royal Bank Scotland PLC (The ) during the first quarter valued at $166,000. Several other hedge funds and other institutional investors have also added to or reduced their stakes in the company.