Stock markets in India along with China, Japan, Hong Kong and even South Korea came under pressure as investors fear the latest missile launch by North Korea which it is also claiming to be most powerful so far. Indian benchmark indices traded within minimal ranges in the early session on Wednesday led by a number of factors starting from North Korean ballistic missile launch, Q2 GDP data, futures and options contract expiry. About after 2 months of silence and peace, North Korea launched a much powerful missile. “The nuclear-armed North test-fired Wednesday morning a missile that could bring the entire continental United States within range, according to the South Korean and US governments,” AFP reported.
“The missile was launched from Sain Ni, North Korea, and traveled about 1000 km before splashing down in the Sea of Japan, within Japan’s Economic Exclusion Zone (EEZ),” Associated Press reported. Following the missile launch, US President Donald Trump held an emergency chat with his South Korean counterpart Moon Jae-in and Japanese Prime Minister Shinzo Abe to discuss their collective response to the latest provocative North Korean missile test, PTI said in a report.
North Korea claimed its latest launch as a new type of intercontinental ballistic missile that some observers believe could put Washington and the entire eastern US seaboard within range, AP said in a report. The North said in a special televised announcement hours after the launch that it had successfully fired what it called the Hwasong-15, a new nuclear-capable ICBM that’s “significantly more” powerful than the long-range weapons it’s previously tested, AP report added.
BSE Sensex advanced 45.68 points or 0.14% to start at 33,664.27 whereas NSE Nifty added 6.4 points or 0.06% to begin at 10,376.65. The benchmark indices suffered from a contrary trade between the industry heavyweight stocks Reliance Industries and HDCF. Among the Asian markets, Japan’s Nikkei 225 index gained 0.3% to 22,552.38, South Korea’s Kospi was almost unchanged at 2,513.42, Hang Seng index in Hong Kong fell 0.3% to 29,590.11 and the Shanghai Composite index sank 0.7% to 3,312.05.
Earlier yesterday, US markets spiked to fresh record highs on Tuesday following the gains in bank stocks and boosted by progress for a tax cut bill, strong consumer confidence data and encouraging comments from — President Donald Trump’s nominee — Jerome Powell who is selected to lead the US Federal Reserve. The Dow Jones Industrial Average rose 255.93 points or 1.09% to 23,836.71, the S&P 500 gained 25.63 points or 0.99% to 2,627.05 and the Nasdaq Composite added 33.84 points or 0.49% to 6,912.36.