Summary Gold fetched $1,307.20 an ounce by 0245 GMT compared with $1,293.88 late Wednesday.
HONG KONG (AFP) - Asian stocks dropped Wednesday, as concerns over the European economy and international conflicts grew.
Traders said sentiment had also been hit by news that several huge mergers had collapsed, including 21st Century Fox s bid for Time Warner and that of Japanese-controlled US wireless operator Sprint for T-Mobile.
"A perfect storm of low volumes, geopolitical worries and pulled mergers is conspiring to keep markets on the back foot," said Chris Beauchamp, market analyst at IG trading group.
Tokyo fell 0.21 percent by the break while Hong Kong slipped 0.35 percent and Sydney was down 0.30 percent. Seoul also dipped 0.10 percent while Shanghai was flat.
This followed losses in London, Paris, Frankfurt, and Lisbon. Official data showed Italy slid back into recession in the second quarter, prompting renewed fears of about the health of the Eurozone.
"It isn t just Ukraine. Even without the risk of some kind of Russian intervention as the Ukrainian army moves to crush separatists, Europe s economy is dead in the water and at risk of a new recession," Reorient Group told Dow Jones Newswires.
In the US, stocks edged higher Wednesday despite new Russian sanctions against the West, with investors saying the economy was "insulated" from conflicts in the Middle East and Europe.
The Dow Jones Industrial Average gained 0.08 percent to 16,443.34, while the broad-based S&P 500 was essentially flat. The tech-rich Nasdaq Composite Index rose 2.22 (0.05 percent) to 4,355.05.
Jack Ablin, chief investment officer at BMO Private Bank said: "The US appears to be more of a safe haven. Investors are trying to cozy back up to the US where there is economic growth and where our economy is somewhat insulated from the geopolitical confrontations that are going on."
In Australia, shares slipped after the unemployment rate spiked to a 12-year high.
The Australian Bureau of Statistics said unemployment rose to 6.4 percent from 6.0 percent in June.
July employment dropped by 300 compared with a forecast increase of 12,000.
On the currency markets, the dollar was at 102.07 yen in early Tokyo trade Thursday, compared with 102.11 yen in New York late Wednesday.
The euro bought $1.3385 and 136.61 yen against $1.3384 and 136.66 yen.
In oil trade, prices moved higher. The US benchmark West Texas Intermediate for September delivery rose 17 cents to $97.09 while Brent crude for September gained 21 cents to $104.80.
Gold fetched $1,307.20 an ounce by 0245 GMT compared with $1,293.88 late Wednesday.
