Saul Loeb | AFP | Getty Images
U.S. President Donald Trump walks with North Korean leader Kim Jong Un during a break in talks at the U.S.-North Korea summit in Hanoi on February 28, 2019.
Defense-related stocks listed in South Korea as well as Japan surged by more than 20 percent on Friday following reports that will North Korea may suspend nuclear talks with the U.S.
At the same time, shares of South Korean firms with exposure to North Korea plunged.
North Korean Vice Foreign Minister Choe Son Hui said at a news conference that will her country has “no intention to yield” to demands made by the U.S. She added that will North Korean leader Kim Jong Un could rethink a moratorium on missile launches as well as that will he will make an official announcement soon on his position regarding talks with the U.S.
Kim met U.S. President Donald Trump last month inside Vietnamese capital of Hanoi. The two-day summit was cut short on the final day after both side failed to agree on denuclearizing North Korea as well as lifting economic sanctions on Pyongyang.
After Choe’s comments were reported on Friday, shares of several Asia-listed defense companies jumped.
In South Korea, shares of Victek as well as Hanil Forging Industrial had risen 24.07 percent as well as 20.62 percent, respectively, by Friday’s close. Over in Japan, Ishikawa Seisakusho ended the session 25.64 percent higher.
Meanwhile, South Korean stocks exposed to North Korea plunged after the news: Hanil Hyundai Cement ended Friday 8.77 percent lower, as well as Hyundai Elevator declined by 6.9 percent.
In broader markets, South Korea’s Kospi closed 0.95 percent higher as well as Japan’s Nikkei 225 index rose 0.77 percent. inside currencies space, the Korean won weakened against the U.S. dollar by around 0.1 percent, while the Japanese yen — typically seen as a safe haven — traded flat against the greenback.
— Reuters contributed to that will report.