Tensions in the Korean Peninsula and Stocks

Tensions on the border between China and India, as well as North Korea’s decision to destroy a liaison office, are some of the most important accidents that took place this week. Moreover, the forthcoming June World Economic Outlook Update is expected to surpass the previous data. Despite all challenges, stocks were mostly higher on June 17.

Importantly, South Korea responded by making it clear that it would no longer accept the unreasonable behavior of North Korea.

It is worth mentioning that, certain Asia-listed defense stocks strengthened their positions. For example, Ishikawa Seisakusho in Japan jumped 14.2% while Victek in South Korea skyrocketed 29.91.%

Nevertheless, South Korean stocks exposed to North Korea dropped on June 17. Hanil Hyundai Cement plunged 14.7% while Hyundai Elevator declined 3,88%.

Stocks and India-China relations

There was a clash on the border between troops from China and India this week. Unfortunately, 20 Indian soldiers lost their lives. Moreover, tensions between the nuclear-armed countries have the potential to destabilize not only the region but the whole world in general. Moreover, both sides should work together to find the best solution.

As mentioned above, stocks were mostly higher on Wednesday. For example, mainland Chinese stocks strengthened their positions on June 17. The Shanghai Composite gained 0.14% to about 2,935.87. Moreover, the Shenzhen Component added 0.192% to approximately 11,420.84.

Hong Kong’s Hang Seng index also improved its position.

Also, South Korea’s Kospi index added 0.14% to close at 2,141.05.

Australia’s S&P/ASX 200 advanced 0.83% to close at 5,991.80.

Nevertheless, Japanese stocks fell on June 17. The Nikkei 225 fell 0.56% to close at 22,455.76. At the same time, the Topix index dropped 0.4% to end its trading day at 1,587.09.

Governments of North and South Koreas should work together to avoid such incidents in the future. However, it won’t be easy to convince North Korea.