US indexes opened lower for the third straight day on Thursday as North Korea's threat to land a missile just short of the USA territory of Guam added fuel to simmering tensions with the United States.
The broad-based S&P 500 shed 0.6 percent to 2,459.50, while the tech-rich Nasdaq Composite Index tumbled 0.8 percent to 6,299.12.
Macy's (M.N) shares closed down 10.2 percent and Kohl's (KSS.N) fell nearly 6 percent as the companies continued to report a drop in quarterly same-store sales, stoking concerns that their turnarounds may still be a long way off.
The Straits Times Index sank 1.31 per cent or 43.52 points to 3,279.72, down 1.4 per cent for the week.
The S&P 500 turned negative and hit a session low after Trump said North Korea "best not make any more threats to the United States". The S&P 500 and Dow were both coming off record highs.
The Labor Department said its Consumer Price Index edged up 0.1 percent last month, which was below the 0.2 percent rise expected by economists polled by Reuters.
Investors piled into safe-haven assets such as U.S. government bonds, gold and the Japanese yen and sold off shares.
Volatility jumped and the pan-European STOXX 600 .STOXX fell 1.1 percent, taking weekly losses to 2.8 percent, its worst since early November 2016. -North Korea tensions exact a toll on investor sentiment.
Barrick Gold Corp rose 2.3 percent to C$21.74 as the price of gold, a safe-haven asset, reached its highest levels in two months.
London's FTSE 100 closed about 80 points, or more than 1%, lower on Friday, adding to a slump of more than 100 points the day before.
The FTSE 100 firm announced in March a year ago that it would run its US-based asset management operation, its UK-based wealth unit, an emerging markets division and Nedbank in South Africa as separate businesses.
US crude oil futures settled almost 2 percent lower at $48.59 a barrel, as Russian Federation considered a future output resumption and the Organization of the Petroleum Exporting Countries boosted its July production numbers.
In Asia, markets were mostly lower after disappointing Chinese trade data.
The September crude contract was up 20 cents to US$49.76 per barrel and the September natural gas contract was up seven cents to US$2.95 per mmBTU. On the Nasdaq, 2,303 issues fell and 567 advanced.
The dollar index fell 0.32 percent, with the euro up 0.42 percent to $1.1819.
US crude oil tumbled 2% to $48.59/bbl, failing to hold above $50 as a report from OPEC showed crude production among the group's members rose in July. Crude briefly pared losses in late trading after US inventories fell more than expected last week.