Gavin Parry, managing director of Hong Kong-based Parry International Trading Ltd., comments on the reaction in financial markets after Yonhap News reported that South Korea had scrambled fighter jets and returned fire after North Korea lobbed dozens of shells into its territory.
The MSCI Asia Pacific excluding Japan Index slumped as much as 2 percent while futures on the U.S. Standard & Poor’s 500 Index dropped 1 percent.
“Regional currencies, equities and U.S. futures moved sharply because the North Korean issue is a tinder-box for the region. They like to saber rattle for attention, but on the heels of a nuclear inspection that indicated they could have bomb capabilities, markets can’t afford to ignore any instability for the region.”
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