SINGAPORE, Nov 22 (Reuters) - Gold was headed for its largest weekly gain in nearly eight months on Friday and the euro hovered at a 13-month low as Russia lowered its threshold for using nuclear weapons and fired a hypersonic ballistic missile at Ukraine.
The risk of escalation also sent European gas prices to a one-year high and pushed investors towards safe havens, underpinning German debt and putting the Swiss franc on course for its first weekly rise in two months.
In Asia on Friday, chipmakers led stocks a little higher after Nvidia (NVDA.O), ouched a record high in U.S. trade on solid earnings, with shares in Taiwan (.TWII), and South Korea (.KS11) up more than 1% and the Nikkei (.N225), opens new tab gaining 0.8%.
Gold was steady at $2,677 an ounce and up more than 4.5% for the week so far while bitcoin , stood on the brink of breaking above $100,000 for the first time.
Assets linked to Adani Group companies remained under pressure, with dollar bonds nursing losses following chairman Gautam Adani's indictment for fraud by U.S. prosecutors.
Russia on Tuesday lowered its threshold for using nuclear weapons and overnight responded to the U.S. and UK allowing Kyiv to strike Russian territory with western weapons by firing a hypersonic intermediate-range missile at Ukraine's Dnipro.
"Those weapons typically carry nuclear warheads," said analysts at ANZ Bank, noting the attack sent oil prices higher.
"The exchange indicates the war has entered a new phase, raising concerns around disruptions to supply."
Brent crude futures are up nearly 4.5% on the week and edged up to touch a two-week high of $74.44 a barrel in Asia trade.
The euro has been friendless and down for seven of the past eight weeks as Europe faces U.S. tariffs, slowing growth, the collapse of Germany's government and strains in France's government over its 2025 budget.
"There doesn't seem to be anything on the plus side of the euro ledger just at the moment," said National Australia Bank's head of FX research, Ray Attrill.
At $1.0469 the common currency is close to breaking support at last year's low of $1.0448. European stocks (.STOXX) are also headed for a fifth weekly drop in a row, while world stocks (.MIWD00000PUS) are up 1% this week.
The dollar index eyed a weekly gain of 0.4% and traded at 107.05. S&P 500 futures were flat. Benchmark 10-year Treasury yields held at 4.432%, more or less steady on the week.
Markets imply about a 58% chance of a Fed cut, down from 83% a week earlier.
Data in Japan showed core inflation held above the central bank's 2% target in October, keeping pressure for a rate rise. Markets are pricing about a 57% chance of a 25 basis point Bank of Japan rate hike in December and the prospect has injected some volatility and even support for the yen .
The yen, down 4% this quarter, was trading firmer at 154.38 per dollar in morning trade.
"Together with speculation about (finance ministry) intervention, I think selling on upticks on dollar/yen is quite decent," said Keita Matsumoto, head of financial institution sales and solutions at Citigroup Global Markets Japan in Tokyo.
"Our investor clients and corporate clients are rather sellers of dollar/yen close to 155."
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The U.S. has banned government employees working in Saudi Arabia from using airports in the country without special authorisation. It comes after a deadly Houthi strike on Riyadh's King Khalid International Airport killed at least 13 people last week.
U.S. President Donald Trump has called it “a disgrace” that Ukraine has resumed attacks on Russian oil refineries. Attacks are continuing from Russia and Ukraine as media reports say Ukraine has almost run out of Patriot interceptor missiles.
An unknown projectile struck a tanker 68 nautical miles northeast of Saudi Arabia on Friday according to a report released by the United Kingdom Maritime Trade Operations (UKMTO) on Saturday.
France is preparing for a fresh wave of nationwide demonstrations this weekend as rising living costs, education concerns and growing political tensions converge into one of the most significant protest movements seen in the country in recent years.
British Defence Secretary Wes Streeting has called for closer cooperation between the United Kingdom and the United States, arguing that the transatlantic partnership remains essential to addressing modern security challenges and maintaining stability across Europe.
U.S. President Donald Trump has lifted sanctions on Russian diesel exports and announced a Russia-Ukraine energy ceasefire aimed at easing fuel prices ahead of November’s midterm elections. But can Moscow deliver and will the move will bring meaningful relief to markets?
Taiwan plans to buy 30 per cent of Alaska LNG's annual output and invest up to $4.4 billion in the project, but binding contracts and financing remain unresolved as the U.S. pushes to expand energy exports to Asia.
Asian stocks plunged to their lowest level in more than two months on Tuesday as advances by Chinese chipmakers rattled investor confidence in the artificial intelligence boom, despite soaring global semiconductor sales.
Artificial intelligence investment is helping sustain global growth at around 3 per cent, with Asia poised to reap major benefits. But soaring energy costs, unequal investment and growing pressure on young workers threaten to leave some economies behind.
Uzbekistan and Russia have a portfolio of more than 200 joint projects worth almost $6 billion, as the two countries continue to expand regional and business ties. The projects were discussed during the third meeting of the Council of Regions of Russia and Uzbekistan, held in Fergana, Uzbekistan.
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