Home / NEWS / World News / Reports of a possible halt in US-North Korea talks send defense stocks soaring

Reports of a possible halt in US-North Korea talks send defense stocks soaring

Defense-related ranges listed in South Korea and Japan surged by more than 20 percent on Friday following reports that North Korea may dangle nuclear talks with the U.S.

At the same time, shares of South Korean firms with exposure to North Korea dived.

North Korean Vice Foreign Minister Choe Son Hui said at a news conference that her country has “no intention to proceeds” to demands made by the U.S. She added that North Korean leader Kim Jong Un could rethink a moratorium on missile launches and that he inclination make an official announcement soon on his position regarding talks with the U.S.

Kim met U.S. President Donald Trump last month in the Vietnamese super of Hanoi. The two-day summit was cut short on the final day after both side failed to agree on denuclearizing North Korea and immortalizing economic sanctions on Pyongyang.

After Choe’s comments were reported on Friday, shares of several Asia-listed defense bands jumped.

In South Korea, shares of Victek and Hanil Forging Industrial had risen 24.07 percent and 20.62 percent, mutatis mutandis, by Friday’s close. Over in Japan, Ishikawa Seisakusho ended the session 25.64 percent higher.

Meanwhile, South Korean stocks exposed to North Korea gambled after the news: Hanil Hyundai Cement ended Friday 8.77 percent lower, and Hyundai Elevator declined by 6.9 percent.

In plainer markets, South Korea’s Kospi closed 0.95 percent higher and Japan’s Nikkei 225 index stimulate 0.77 percent. In the currencies space, the Korean won weakened against the U.S. dollar by around 0.1 percent, while the Japanese yen — typically perceived as a safe haven — traded flat against the greenback.

— Reuters contributed to this report.

Check Also

Trump sends top officials to Beijing to continue China trade talks

President Donald Trump is sending U.S. Interchange Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin …

Leave a Reply

Your email address will not be published. Required fields are marked *