North Korea (click here) fired a ballistic missile over Japan, reigniting a global risk-off trade on worries about the growing nuclear threat.
However, Nomura analysts say tensions around North Korea remain contained.
They cited the lack of signals from U.S. military action and Nomura's in-house geopolitical consultant, who last week lowered the chance of war on the Korean peninsula to 35 percent from nearly 50 percent.
Asia is really focused on their investments and how uncertainty plays into their future. Oddly enough, they look to different markers in regard to national security.
March 7, 2017
by Brent Miller and Hooyeon Kim
While economists (click here) pencil in smallish cuts to South Korean GDP this year and a big hit to the travel sector, the most enduring impact of China’s clampdown on outbound tourism could be an acceleration of efforts by Seoul to reduce dependence on its giant neighbor.
Analysis by Natixis Asia emphasizes that South Korea is likely to keep winding back risk exposure to China, particularly when it comes to foreign direct investment.
Southeast Asia, with expanding consumer markets and competitive wages, appears well positioned to benefit....
The Asia Pacific is where folks live. They have to look at the future differently. They can't let anything like a nuclear bomb dissuade them. While Americans carry on in fear about a chance for North Korea to land a nuclear missile inside the borders, the Asia Pacific doesn't.
To the Asia Pacific North Korea is developing weapons because it is insecure against at least three major permanent members to the UN Security Council. It is a heck of a neighborhood when one honestly assesses it. It is no wonder that the Asia Pacific is not interested in a lot of inflammatory international language that is politically based. They rather find a solid static international environment that lets life be life.
It is very mentally healthy to get on with life and plan for the future in the face of nuclear weapon development by North Korea. After all, it is the USA that is the focus of Un's wrath. Why worry? It might work out for everyone other than the USA. I am sure that is what Un figures. If the USA can be stopped including being underwater, the world will be safe from Wall Street Wars. No lie.
So, while there is a lot of tragedy in the Gulf states in the USA, the Asia Pacific might be interested in the diversion by Trump. They are probably applauding his trip to Texas long about now. So, I guess he made it there? I am sure the markets have been interesting.
