Diawa: Markets Not Pricing Risk Appropriately On North Korea Threat

A North Korean war appears as a distinct possibility, but the markets appear not to be pricing in this possibility. As NBC news reports Thursday that US intelligence agencies are “unanimous” in their assessment that North Korea has a mini nuclear weapon, a Daiwa Capital Markets report says renegade leader Kim Jong-un has “chosen a path of no return” with “little room for either side to step back.” But are markets pricing in the possibility that the US will be forced to tolerate a nuclear North Korea? North Korean war: Window for the US to ‘denuclearise’ the North has almost…