Gold, metals and oil extended losses on June 14 as investors dumped higher-risk assets, Japanese stocks regained lost ground and the US dollar set a seven-week high on persistent talk of higher US interest rates.

Japans Nikkei stock average (N225) dropped almost 1% at the start but clawed back the losses and registered a 1.05% gain, thanks to advances by retailers such as Aeon Co which are dependent on the domestic economy.

The insipid recovery in Tokyo was reflected in other Asian stock markets with South Koreas benchmark KOSPI rising 0.9% and Taiwans key index adding 0.85%.

Tokyo shares had their biggest one-day percentage fall in two years on June 13. The losses in Asia spilled over into Wall Street where the Dow Jones industrial average dropped 0.8% to 10,706.14 yesterday. After more than a month of steady declines, it has now lost all of its gains for the year.

The tech-heavy Nasdaq composite index fell for the eighth straight day, dropping 0.9% to 2,072.47.

Investors have dumped riskier