US, Japan flash mixed signals on North Korea missile launches
Early Wednesday morning in Asia, Reuters conveyed three ballistic missile launches from North Korea after US President Joe Biden left the region following a trip in which he agreed to boost measures to deter the nuclear-armed state. “South Korea's Joint Chiefs of Staff said the three ballistic missile launches were fired in the space of less than an hour from the Sunan area of the North's capital Pyongyang,” the news adds.
The North Korean act was in direct violation of the US and South Korea's warning to the hermit kingdom as the news mentioned, “US and South Korean officials had warned that North Korea appeared ready for a weapons test, possibly during Biden's visit.”
However, US Military said, per Reuters, “We aware of multiple North Korean missile launches, but they are not a direct threat to US soldiers, territory, or allies.”
On the contrary, Japan's Defense Minister Nobuo Kishi stated that North Korean missile launches are unacceptable.
Market reaction
Although the geopolitical threats from North Korea are less important for now, considering the Russia-Ukraine crisis and growth fears, S&P 500 Futures paused the day-start advance around 3,960, up 0.40% intraday, following the news.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
