Donald Trump's threats towards North Korea struck fear into global markets, with Asian shares taking a special hit. South Korean shares slid to a one-month low on the news, after having one of the best performances so far this year.
Tensions over North Korea's nuclear ambitions and discord over the THAAD missile defense system are set to dominate the agenda when South Korean President Moon Jae-in meets his Chinese counterpart Xi Jinping this week.
Pyongyang claims that its rockets can now reach every corner of the United States. But is that really what Kim Jong Un wants? His sole aim is to maintain his grip on power, says Jürgen Hanefeld.
A top UN official said he encouraged North Korea to be open to "talks about talks" during a visit to the country. The United States also appeared to drop preconditions for talking with North Korea.
Pyongyang has said that the outbreak of war on the Korean peninsula was now a matter of "when," rather than "if." North Korea's Foreign Ministry condemned drills by the South Korean and US militaries.
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