Asian Tech Stocks Fall, Energy Gains as Korea Threat Seen Muted

Asian technology stocks fell, weighing on the benchmark index, as investors largely shrugged off the latest threats from North Korea. Energy stocks gained.

The MSCI Asia Pacific Index declined 0.2% to 161.92 as of 11:47 a.m. in Hong Kong. North Korea’s foreign minister Ri Yong Ho said in New York that the regime has the right to shoot down U.S. warplanes under the United Nations charter and described U.S. President Donald Trump’s recent comments as tantamount to a declaration of war. South Korea’s Kospi index lost 0.3 percent even as almost two shares gained for each one that fell.

“North Korea has always been a temporary issue for markets,” said Seo Sang-Young, a strategist at Kiwoom Securities Co. in Seoul. “It’s an excuse for investors to sell technology shares that rose a lot recently and rotate into energy stocks.”

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