The S&P/TSX composite index was down 39.02 points to 15,217.33, with most sectors finishing in the red while bullion stocks surged almost 1.9 per cent. Mainland markets also traded below the flat line, with the Shanghai Composite slipping 0.18% and the Shenzhen Composite lower by 0.14%.
North Korea does have the habit of shooting off its mouth but this time, the threats seem to be much more serious and that is why the world leaders are taking it a bit more seriously this time and that is also the reason why we are seeing the stock markets correct and the gold prices shoot up.
"We are encouraged by our first-quarter performance, although we continue to believe that fiscal 2018 will be a transition year for our company, as we focus on laying the foundation for the future by executing on our strategic plan", he said. Futures pointed to further declines on Wall Street, with S&P 500 futures down 0.3 percent at 2,465.70 and Dow futures falling 0.2 percent to 21,986.00. Australia's S&P/ASX 200 dropped 1.1 percent to 5,696.80.
Trump had told North Korea to not "make any more threats" to the US or the country "will be met with fire and fury like the world has never seen".
Japan said on Tuesday it was possible that North Korea had already developed nuclear warheads and warned of an acute threat posed by its weapons programmes as Pyongyang's continues missile and nuclear tests in defiance of United Nations sanctions.
But he said that investors remained wary of events that could spike volatility in the foreign exchange market on the holiday Friday. "North Korean nuclear tensions rise, dampening appetite for risk assets (equities, industrial commodities) in favor of traditional safe havens (gold, silver, bonds, Japanese yen, Swiss franc)".
The dollar index .DXY , which measures the US currency against a basket of other major currencies, fell 0.14 percent. The Russell 2000 index of smaller-company stocks gave up 13.20 points, or 0.9 percent, to 1,396.95.
The sabre rattling sent tremors throughout stock markets globally as investors responded to rising geopolitical tensions by selling off stocks and moving to traditional safe havens such as gold and USA government bonds.
The broad-based S&P 500 fell less than 0.1 percent at end at 2,474.02, while the tech-rich Nasdaq Composite Index dropped 0.3 percent to 6,352.33.
"Heightened geopolitical risks overnight have seen the markets flip from risk-on to risk-off and we have to wait and see how long this move runs before adding some positions", said Viraj Patel, an FX strategist at ING. The September copper contract was down two cents to US$2.91 a pound.
The Canadian dollar was trading at an average price of 78.67 cents United States, down 0.04 of a USA cent. The yield on the 10-year Treasury note rose to 2.27% from 2.26%.
The dollar inched lower to 109.99 yen on Thursday, holding above Wednesday's low of 109.56 yen, which was the greenback's lowest level since June 15.