Crossfire War – TEHRAN WATCH – Markets Theatre: Tehran – Pyongyang – Beijing/Hong Kong – Seoul – Tokyo – Singapore – Mumbai; Economic Shock Waves Result of North Korea Test – Not a One Day Event
Night Watch: HONG KONG – There were some immediate economic shock waves as a result of Pyongyang conducting its first nuclear bomb test in support of Tehran’s nuclear program. The South Korean Prime Minister called an emergency meeting for Monday afternoon to evalutate the impact on the market in Seoul. As an immediate reaction the benchmark Korea Corporate Stock Price Index (KOSPI) fell 3.6% to 1,303.62 right after Pyongyang’s announcement of its nuclear test. In Hong Kong the Hang Seng Index was down 274.59 at 17,628.80. Tokyo and Taipei were spared an immediate impact since they were closed Monday for a holiday. [ALJAZEERA]
The problem for international investors, especially for those who are not speculators, but seriously involved in all areas of international business, this is not a one day event. As crossfirewar.com reported, South Korean intelligence believes other tests are being planned and these tests are not for Pyongyang to go around bragging they are now part of the nuclear club. These tests are the result of Tehran telling North Korea, last November, that if they continue to export nuclear-ballistic missile technology to Iran then Iran will send them free oil and gas. These tests, and the exports to Iran will continue until military action – war destroys North Korea’s ability to continue them and eventually attacks Iran’s nuclear program which is by no means defensive.
Expect no help from Beijing who never supported anti-proliferation of weapons of mass destruction because they want Iran’s foreign policy to weaken three of China’s rivals, the West-India-Russia. Nor would Beijing mind if Japan were weakened. With the economic lifelines at stake there is no other choice but war. Beijing – Pyongyang-Tehran view the diplomatic efforts to resolve the issue as laughable. That is no exaggeration, just look at China’s representative to the UN Security Council whenever he speaks to the media.