Markets in Asia are expected to react to elevated tensions on the Korean Peninsula after North Korea said it tested a hydrogen bomb over the weekend.
Markets in Asia on Monday are expected to react to elevated tensions on the Korean Peninsula after North Korea said it tested a hydrogen bomb over the weekend.
North Korea claimed on Sunday that it had conducted a test of a hydrogen bomb meant to be carried by a long-range missile. The test — which the North called a “perfect success” — was estimated to have an explosive yield of up to 100 kilotons, news agency Yonhap reported a South Korean lawmaker as saying.
President Donald Trump called North Korea’s latest test “hostile and dangerous.” When asked about the possibility of a U. S. military attack in response to the North’s latest actions, Trump told a reporter, “We’ll see.”
The Sunday test came on the back of heightened geopolitical tensions in the region. The North had launched a missile that flew over Japan just a few days prior.
“After a risk positive overnight session on Friday, news on Sunday that North Korea successfully tested a more advanced nuclear weapon has this morning triggered a bid for safe haven currencies (Japanese yen and Swiss franc) while [the] Australian dollar and New Zealand dollar are a little bit softer, ” said National Australia Bank Currency Strategist Rodrigo Catril in a Monday note.
“We now probably need to wait for Asia to open to assess the full reaction from the weekend news.”
Against the Japanese currency, the dollar fetched 109.
