Global stocks slip as Korean Peninsula tensions flare

Stock markets slipped and havens gained on Monday as North Korea’s 6th nuclear test provoked US into weighing new economic sanctions that could target China.

Japan’s Nikkei lost almost 1 percent and Europe’s major exchanges opened more than half a percent down, according to Reuters.

Sunday’s test, and reports from Seoul that Pyongyang was making preparations for another missile launch, sparked another warning from Washington and drove South Korea’s stock KOSPI more than 1 percent lower.

The Stoxx Europe 600 Index declined, with all industry sectors in the red, after a report that Pyongyang is preparing to launch an intercontinental ballistic missile heightened investors’ unease, according to Bloomberg. S&P index futures also fell, while most European government bonds advanced and the yen and Swiss franc led currency gains. The euro strengthened even as economists expect European Central Bank President Mario Draghi to express concern Thursday about the currency’s rise. Industrial metals including copper and nickel extended a rally.

The White House warned any nation doing business with Kim Jong Un’s regime would be met with economic sanctions and trade embargoes, and the US Defence Secretary said the U.S. has "many military options."