Asian stock markets fell this morning as tensions rose between North Korea and US president Donald Trump.
North Korea said it was considering a missile strike on US Pacific territory Guam in response to Mr Trump’s statement that any threat to the United States would be met with “fire and fury”.
A spokesman for the Korean People’s Army said that it was “carefully examining” plans for a missile attack on Guam which has a large American military base.
Investors fled into gold and the yen and equity markets fell. Financials and real estate stocks were among the worst hit.
Japan’s Nikkei lost 1.4%. South Korean shares, which have been among the strongest global performers this year, fell 0.9%.
US stocks closed lower after Mr Trump’s threats triggered a late afternoon sell-off.
Analysts said European markets are unlikely to suffer any sharp falls. Financial markets have tended to view North Korea’s comments as sabre-rattling but there is a growing anxiety as it develops its ballistic missile capabilities and Mr Trump steps up his rhetoric.