Asian shares were seen dropping during the course of the session on Monday as China remained positive, following North Korea’s missile test that continue to weigh on regional risk sentiment.
According to South Korea’s military, multiple missiles were fired off its east coast, which flew about 1,000 km. However, Japan claimed that three missiles were fired inside its exclusive economic zone, in which the country warned that it would not tolerate North Korea’s provocative actions.
Japan’s Nikkei 225 declined 0.46%, while the S&P/ASX 200 lost about 0.24% after Australia reported a better-than-expected retail sales for January, which gained 0.4% month-on-month basis.
The Shanghai Composite climbed 0.37%, while Hong Kong’s Hang Seng index added 0.37%.
During the annual meeting of parliament on Sunday, Premier Li Keqiang remained cautious with his outlook on China’s economic growth, which he claimed to expand by 6.5 percent, compared to the consensus estimate of 6.5 to 7 percent last year.
Subsequently, among Li’s notable targets during his speech includes an annual consumer price index (CPI) of 3 percent, along with an annual budget deficit of 3 percent of gross domestic product (GDP), and M2 growth for this year of 12 percent.
Based on the reports, the annual National People’s Congress (NPC) is scheduled today until March 15th.
Meanwhile, U.S. futures were seen soaring during the session on Friday, led by advancing shares in the Healthcare, Financials and Technology sectors.
The Dow Jones Industrial Average (DJIA) added 0.01% in late trade, while the S&P 500 index rose 0.05%, and the NASDAQ Composite index gained 0.16%.
North Korea Faces Threats
Ahead of the reports with North Korea firing ballistic missiles into the sea of Japan’s northwest coast, it has been said that is served as a drill to prepare for a war, according to South Korean and Japanese officials.
Seoul claimed that four missiles were fired from North Pyongan province into the East Sea on Monday, in which both South Korea and United States were significantly analyzing the date for further details.
An annual joint military between Seoul and Washington emerged last week, in which it is something North Korea has long considered as a deliberate provocation.
Japanese Prime Minister Shinzo Abe said that there were three missiles fired in Tokyo’s Exclusive Economic Zone (EEZ), with waters extending 200 nautical miles from its coast.
"This clearly shows North Korea has entered a new stage of threat," Abe said in parliament.
"The launches are clearly in violation of [UN] Security Council resolutions. It is an extremely dangerous action."
Given tensions on the anticipated North Korea’s preparation in war with its ballistic missiles fired that weighed on regional risk sentiment, it is expected that shares will decline as officials declared that the country is now facing a new stage of threat.
Hence, it could send Asian shares to go deeper.
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