Shares of South Korean and Japanese defense firms rose sharply in Asia’s session after the North launched a ballistic missile that flew over Japanese territory.
Nuclear threat?
The latest move from North Korea is a signal it may test a nuclear bomb in the next month or two, according to Rodger Baker, executive director at the Stratfor Center for Applied Geopolitics at Rane, a risk management firm.Squawk Box Asia ," adding that a test is likely to take place between China's party congress in mid-October and the U.S. midterm elections in November.
"It does make sense that if they're going to be testing sometime in the next month, month and a half, the logic would be to do it between those two events," he said. "It's probably for political considerations that North Koreans would be very cautious about testing in the middle of the Chinese Party Congress, certainly that may not go over well for the Chinese leadership and their relationship with North Korea."
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