AFP, Hong Kong :
Most Asian stock markets turned lower Friday after another missile launch by North Korea stoked the possibility of fresh geopolitical tensions while the pound held its gains on bets that British interest rates will rise next month.
Pyongyang launched its second rocket over Japan’s Hokkaido in as many months, just days after the UN Security Council imposed sanctions in response to its nuclear test.
Analysts said the rocket travelled further than any other it has fired, adding to concerns about the North’s ability to strike the US mainland with an atomic bomb.
The news rattled regional markets, which had started to enjoy a return to optimism after last week’s global sell-off sparked by the nuclear test that fanned fears of a regional conflict.
Seoul fell 0.4 percent while the Korean won also dipped 0.1 percent but Tokyo edged up 0.1 percent on yen weakness.
Hong Kong sank 0.7 percent, Shanghai shed 0.4 percent and Singapore lost 0.5 percent while Sydney was 0.6 percent off. Wellington, Taipei and Manila were also lower.
However, while investors ran for cover, analysts were less startled by the latest move.
“I wouldn’t necessarily say this is an escalation,” James Soutter, portfolio manager at K2 Asset Management in Melbourne, told Bloomberg News.
“This is more of a continuance of provocation. Hence markets won’t like it, but I don’t think it’s necessarily the precursor to a sustained market pullback.”
On currency markets the pound maintained its strength against the dollar after the Bank of England (BoE) surprised everyone with a hawkish statement in its latest policy meeting.
Most Asian stock markets turned lower Friday after another missile launch by North Korea stoked the possibility of fresh geopolitical tensions while the pound held its gains on bets that British interest rates will rise next month.
Pyongyang launched its second rocket over Japan’s Hokkaido in as many months, just days after the UN Security Council imposed sanctions in response to its nuclear test.
Analysts said the rocket travelled further than any other it has fired, adding to concerns about the North’s ability to strike the US mainland with an atomic bomb.
The news rattled regional markets, which had started to enjoy a return to optimism after last week’s global sell-off sparked by the nuclear test that fanned fears of a regional conflict.
Seoul fell 0.4 percent while the Korean won also dipped 0.1 percent but Tokyo edged up 0.1 percent on yen weakness.
Hong Kong sank 0.7 percent, Shanghai shed 0.4 percent and Singapore lost 0.5 percent while Sydney was 0.6 percent off. Wellington, Taipei and Manila were also lower.
However, while investors ran for cover, analysts were less startled by the latest move.
“I wouldn’t necessarily say this is an escalation,” James Soutter, portfolio manager at K2 Asset Management in Melbourne, told Bloomberg News.
“This is more of a continuance of provocation. Hence markets won’t like it, but I don’t think it’s necessarily the precursor to a sustained market pullback.”
On currency markets the pound maintained its strength against the dollar after the Bank of England (BoE) surprised everyone with a hawkish statement in its latest policy meeting.
