Asia markets shrug off North Korea missile to follow Wall Street higher

Asian markets shrugged off North Korea's latest missile launch on Wednesday, instead following the lead from Wall Street, where the Dow Jones industrial average closed 225 points higher.

North Korea on Wednesday local time launched a likely intercontinental ballistic missile that landed in the Sea of Japan, according to the Pentagon. The launch, the North's first since Sept. 15, came after the U.S. classified North Korea as a country that supported terrorism on Nov. 20.

Following the launch, President Donald Trump said the U.S. would "take care of" the situation. Japanese Prime Minister Shinzo Abe and Trump have also agreed to increase their cooperation on the North, Reuters said, citing Japanese media.

Japan's Nikkei 225 rose 0.53 percent in early trade, shrugging off the North's latest missile launch. Major exporters gained on the dollar's move higher against the yen. Toyota tacked on 0.64 percent, Sony rose 1.03 percent and Sharp was 0.14 percent higher.

Retail sales in October declined 0.2 percent compared to one year ago, although the figure remained in line with what was forecast in a Reuters poll. That was the first fall in yearly retail sales in a year, Reuters said.

Across the Korean Strait, the benchmark Kospi index edged up 0.37 percent. Blue-chip heavyweight Samsung Electronics was off 0.34 percent while companies that have been sensitive to developments related to the THAAD anti-missile system traded mixed: Lotte Shopping fell 1.17 percent and LG Household and Healthcare was flat.

Shares of cosmetics names Amorepacific and Cosmax were up 1.13 percent and 2.03 percent, respectively, following news that China would once again let travel agencies resume selling tour packages to South Korea.

Down Under, the S&P/ASX 200 was 0.61 percent higher, with heavily-weighted financial stocks climbing 0.74 percent. Sector-wise, utilities and retail names traded higher.

Source: Bloomberg Pro Terminal

Jr Trader Alexander Kumanov

Read more:

• And for all the bounty hunters: Iran offers $80m for the head of Donald Trump
• US service member and 2 US Defense Dept contractors killed in Kenya attack
• Iranian Quds leader Qasem Soleimani has been killed – how are markets reacting
• A calm end of an otherwise loud 2019
• Old but Gold – Top 5 posts of Varchev Finance