Southeast Asian stock markets fell on Wednesday after North Korea said it was considering a missile strike on U.S Pacific territory Guam, rattling financial markets and prompting investors to seek havens such as gold and the yen.
The strike plan would be put into practice at any moment once leader Kim Jong Un makes a decision, a spokesman for the Korean People’s Army (PKA) said in a statement carried by the North’s state-run KCNA news agency.
The statement came just hours after U.S. President Donald Trump told the North that any threat to the United States would be met with “fire and fury”.
Asian shares and U.S. stock futures fell on Wednesday, and the dollar skidded 0.4 percent against its perceived safe-haven Japanese counterpart, plumbing its lowest levels since mid-June.
North Korean leader Kim Jong Un is causing lots of uncertainty in world markets with his threats against the U.S. Credit: REUTERS/Damir Sagolj
Financial markets have tended to quickly shake off North Korea’s periodic sabre-rattling in the past, dismissing it as bluster, but tensions have lingered this year amid signs that it is making progress in its ballistic missile programme and on Trump’s growing frustration with Pyongyang.
In Southeast Asia, Philippines fell as much as 0.4 percent, hurt by financials and real estate stocks. BDO Unibank and Ayala Land fell 1.5 percent each. Vietnam shares were the biggest losers in the region, falling as much as 2 percent. Financials and consumer staples dragged the index lower.
Thailand fell 0.1 percent, with industrials accounting for most of the losses. Siam Makro fell as much as 0.1 percent, posting its biggest intraday percentage loss in more than a month.
In Malaysia, shares fell 0.3 percent hurt by financials and consumer discretionary stocks. Genting Malaysia and Malayan Banking fell as much as 1 percent and 1.1 percent, respectively.
Singapore markets were closed on Wednesday.
Reuters
