Equities fall on rising tension between US & North Korea

Xavier Trudeau
Août 12, 2017

"Tensions between North Korea and the United States are likely to have a negative impact on the main index", Kim said.

North Korea had responded with a threat to land a missile near the U.S. Pacific territory of Guam.

In an editorial, The Guam Daily Post said the spotlight on the island offered an opportunity to show the world why an island of 162,000 people draws more than 1.5 million visitors a year.

Guam is home to about 163,000 people and a United States military base.

"While it is extremely unlikely that Pyongyang would risk the assured annihilation of its revered leadership with a pre-emptive attack on USA citizens, some residents of Guam are concerned. Hopefully Kim Jong-Un will find another path!"

North Korea accuses Washington of devising a "preventive war" and has said any plans to execute this would be met with an "all-out war, wiping out all the strongholds of enemies, including the US mainland".

North Korea said Wednesday that it was examining operational plans for attacking Guam, an angry reaction to new United Nations sanctions for its intercontinental ballistic missile tests and a USA suggestion about preparations for possible preventive attacks to stop the North's nuclear weapons program.

"Military solutions are now fully in place, locked and loaded, should North Korea act unwisely".

"It's just like setting off fireworks because most of their guided missiles just crash midway through flight", she said.

Even though Kim threatened to unleash "enveloping fire" by lobbing four missiles nearby, Guam officials want to allay fears of an Armageddon by touting the island's idyllic scenery and secluded beaches.

The same goes for Guam - for the most part.

"Well, I think as far as reassurance they probably feel as reassured as they can feel".

Yoshihide Suga, Japan's chief government spokesman, said earlier this week that Tokyo "can never tolerate" provocations from North Korea and the country's military, will "take necessary measures" to protect itself.

North Korea's rockets have a spotty track record.

The stage was set for the USA indexes to go lower early Wednesday as investors around the world reacted to the rising war of words between the US and North Korea, pushing global market indexes lower.

Carl Schuster, a Hawaii Pacific University professor and former director of operations at the U.S. Pacific Command's Joint Intelligence Center, told CNN a single ship equipped with Aegis could probably take out two missiles.

The US stationed some of its atomic weapons in the South following the 1950-53 Korean War, but withdrew them in 1991 when two Koreas jointly declared they would make the peninsula nuclear-free.

South Korean stocks extended losses late Wednesday morning as rising tensions over North Korea's nuclear and missile programs weighed on the main index.

Padilla was also confident that there "is still a lot of room for dialogue" to thwart the North Korea's plan. "Certainly they feel more reassured with me than they do with other presidents from the past because nobody's really done the job that they're supposed to be doing".

North Korea describes the Pukguksong-2 as a "medium-to-long range strategic missile", the same term it uses for the intermediate range Hwasong-12, and some South Korean experts see the missile as potentially capable of reaching Guam. But residents are increasingly anxious over Washington's escalating war of words with North Korea.

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