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‘North Korea’s H-Bomb Threat Has Limited Impact’ Analyst Imagines

And it got still more ridiculous. 

If you're in South Korean equities, you'd be forgiven for being a bit nervous. Yes, earnings growth is spectacular and yes, valuations are a bargain. But, the escalating rhetoric between Kim and Trump makes it impossible to get comfortable. Throw in the fact that South Korean markets saw a veritable avalanche of inflows during the first seven months of the year (i.e. some folks believe things ran too far, too fast despite the compelling fundamentals) and you've got a recipe for pullbacks or at least for episodic bouts of selling. Well sure enough, the Kospi has now declined for four days in a row, capping things off by falling 0.75% on Friday after North Korea's top diplomat suggested Kim may be considering detonating an H-bomb in the pacific. Note that the Kospi has had two four-day losing streaks in the past three weeks: Unsurprisingly, those stretches coincide with flareups in the North Korea drama. Of course common sense eludes some commentators. "North Korea’s threat to test a hydrogen bomb is having a limited impact on South Korean equities today and the benchmark is falling mainly because of a decline in commodities and U.S. equities Thursday", Seo Sang-Young, str
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2 comments on “‘North Korea’s H-Bomb Threat Has Limited Impact’ Analyst Imagines

  1. Greg Pinelli says:

    The “promises” and “threats” fly all over the map…Remember the Guam nonsense??…The effect will either be catastrophic ( a preemptive strike) or virtually nothing…the middle ground that have been US-No. Korean “relations” have been a prolonged time-buying exercise..Remember Bill Clinton’s agreement and what a “good deal” it was for the US???!

    At some point…October???…No. Korea will push too hard/fast on missile/bomb development..Trump will feel the heat and perhaps act impulsively. Who knows? The REAL Geopolitical problem could well be KRG
    referendum for Independence and the potential it has to take a chaotic situation and turn into a gigantic multi sided Middle East conflagration between Iraq-Iran-Turkey and the various Kurdish aspirants.

  2. Paul Gambles says:

    Pivot to Asia ain’t looking so good these days…

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