(Bloomberg) — South Korea’s stocks and currency fell after President Donald Trump warned North Korea that if it “does anything” to the U.S. or its allies “things will happen to them like they never thought possible.”
South Korea will strengthen monitoring of financial markets and economy, and take action based on a contingency plan in case of any unusual movements, the Finance Ministry said in a statement after meeting with other ministries, Bank of Korea and financial regulators.
“The equity markets are in risk reduction mode as investors move to secure liquidity with speculators exacerbating moves through tactical shorts,” Stephen Innes, head of trading at for Asia-Pacific at Oanda Corp. in Singapore, said in a note Friday. “Considering the limited steps in forex, the signals suggest we’re in the midst of a global risk asset consolidation as opposed to a deeper retreat, however.”
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