Asian Markets Ignore North Korean Threats

Although 64 years have passed since the end of the Korean War, the continuous tensions still exist. Last week, North Korea launched missiles towards the Japanese water as a kind of disruption to the accident of North Korean president this month in Malaysia.

As a result, the US sent a military aircraft after the accident to South Korea to hold components of defensive missile system. According to the Washington post, there are some voices in the South Korean parliament demanding the return of the American nuclear weapons to the South Korean soil.

From the North Korean side, they did not deny the accident; moreover, they declared on the official TV that the missile launching was a training to hit American base in Japan. From the American side, secretary of state Rex Tilersson said “the US policy of strategic patience has ended”, President Trump tweeted “N. Korea behaved very badly”.

Last Saturday North Korea launched another missile test and a speech by the North President saying that the whole world will whiteness our victory and the history will remember the revolution that had happened this day.

Every day there are news coming from the Korean soil; however, this time markets completely ignored the actions. It seems that markets learned to live with that, especially as USD dropped after the last release of the Fed interest rates. Gold remains the fear safe heaven, rose last week from 1195 to 1228.

On the other hand South Korean index, KOSPI, rose from 2117 to 2164 last week. Chinese composite index dropped from 3268 to 3237. USD dropped against South Korean Won from 1144 to 1130.