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Nikkei edges down ahead of holiday as investors warily eye North Korea

Nikkei edges down ahead of holiday as investors warily eye North Korea”

Not backing down, President Donald Trump warned Kim Jong Un's government on Thursday to "get their act together" or face extraordinary trouble, and suggested his earlier threat to unleash "fire and fury" on North Korea was too mild.

"Maybe that statement wasn't tough enough", Mr. Trump said, in the latest U.S. salvo in an escalating exchange of threats between the nuclear-armed nations. Essentially, the US has previously always been careful to provide an exit strategy for North Korea.

Hu Xijin, the outspoken editor of the Global Times, a nationalist Communist party-controlled tabloid, claimed the US would come off worse from any military clash with North Korea since it had far more to lose.

This undermines any progress that may be being made, and pushes North Korea further toward a critical nuclear tipping point. "And as I said, they will be met with fire, fury, and frankly, power, the likes of which this world has never seen before". Accusing his predecessors of insufficient action, Trump said it was time somebody stood up to the pariah nation.

The dollar inched lower to 109.99 yen on Thursday, holding above Wednesday's low of 109.56 yen, which was the greenback's lowest level since June 15.

Mr. Trump echoed that threat Thursday, insisting if North Korea took any steps to attack Guam, its leaders would have reason to be nervous.

"Things will happen to them like they never thought possible, OK?"

Trump said the US loses a lot of money on trade with China.

"Kim is not nuts, but a student of history", said Harry Kazianis, director of defense studies at the Center for the National Interest, a Washington think tank founded by former President Richard Nixon.

Mr. Trump said he would soon announce a request for a budget increase of "billions of dollars" for anti-missile systems.

Guam is home to about 163,000 people and a U.S. military base that includes a submarine squadron, an air base and a Coast Guard group.

U.S. Secretary of State Rex Tillerson sought to calm tensions after Trump's remarks, saying "Americans should sleep well at night".

Previously, North Korea would have been viewed as the most risky party in such a crisis. But if [Pyongyang] "uses its own fury to deal with Trump's fury then it could lead to a very dangerous scenario".

Its location, within range of North Korean medium- and long-range missiles, and military significance to the US make it a logical target for Pyongyang. Analysts say they have seen no evidence of any increased alert in North Korea. We do not seek an accelerated reunification of the peninsula.

Guam lies about 2,100 miles (3,400 kilometers) from the Korean Peninsula, and it's extremely unlikely Kim's government would risk annihilation with a pre-emptive attack on U.S. citizens.



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