North Korea Conducts Nuclear Test

May 26th, 2009 - 12:42 am ICT by GD  

The Japanese Yen and the dollar saw a rise following a geopolitical upset as North Korea said it has successfully conducted a nuclear test. In an official statement released on Monday, North Korea said that it had conducted the underground nuclear test to “bolster up its nuclear deterrent for self defense”. The Korean Won slid 1% against the US dollar after the announcement came through.

North Korea said it had carried out a nuclear test against all international warnings but the test was successful and did not result in any leaked radiation. The announcement came after the US Intelligence said it had detected a seismic occurrence at a suspected test site and Russia said it was sure that a nuclear test had been performed. After the announcement, US called the test “a provocative act” and China termed it “brazen”, also saying that it will carry on its “resolute opposition” to the test because it “defied the universal opposition of international society”.

Calling the test “unpardonable”, Japanese Prime Minister Shinzo Abe said that the region was now ” entering a new, dangerous nuclear age”. According to the US White House spokesman Tony Snow, there will now be pressure on the UN Security Council to condemn the test and launch a series of economic sanctions against the country, and he added, “We expect the UN Security Council to take immediate actions to respond to this unprovoked act.”

The news of the test brought a forced temporary halt on trading in the Kospi of South Korea. However, the market continued trading after the initial shock was over.

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