AFP, Hong Kong :
Japanese shares got a boost Tuesday on a weaker yen but elsewhere in Asia some key markets drifted lower despite a positive lead from Wall Street as geopolitical concerns kept traders on edge.
North Korea’s envoy to the United Nations warned Monday that Pyongyang was preparing for “any mode of war” triggered by US military action, just days after it defiantly test-fired another missile.
US Vice President Mike Pence was due to arrive in Tokyo Tuesday bringing a renewed commitment to Japan’s security amid growing threats from the isolated state.
There are fears that Pyongyang could react to a potential US strike by targeting South Korea or Japan, and officials in Tokyo and Seoul have been ill at ease with the more bellicose language deployed by President Trump’s administration.
Washington has refused to rule out military action against the hermit state’s regime, worried that North Korea may soon build a nuclear-tipped missile that could reach the US.
“It seems the focus is now firmly on future missile tests from North Korea and whether any future tests will actually be successful,” said IG market strategist Chris Weston.
“From here, it would all be down to Mr Trump and his allies and what their reaction would be, but we can believe that markets will not take kindly to this. For now though the hope is on an increased prospects for talks, potentially incorporating China more into any negotiations.”
Hong Kong fell 0.9 percent in post-holiday trade, while Seoul retreated 0.1 percent and Shanghai was also down 0.1 percent despite positive data on China’s economy released Monday.
Sydney was down more than one percent amid a slump in iron ore prices.
