North Korean missile test and US SEC moves to delist Chinese firms can weigh on sentiment

Early Thursday morning in Asia, Japan’s Coast Guard said, Ballistic missile may have been fired from North Korea, per Reuters. The news also warned the ships against coming close to falling objects, calls on them to provide information.

Following that, local media from Asia mentioned that the North Korean missile did not enter Japanese territory or special economic zone.

Also on the risk-negative side were chatters surrounding the US Securities and Exchange Commission’s (SEC) run-up to oust foreign companies, indirectly targeting Chinese firms, which do not comply with the American auditing standards and are run by their respective government.

“The Holding Foreign Companies Accountable Act, signed into law by then-President Donald Trump in December, is aimed at removing Chinese companies from U.S. exchanges if they have failed to comply with American auditing standards for three years in a row,” said Reuters.

FX implications

Given the light calendar and heavy bearish moves in the last couple of days, market players paid a little heed to the aforementioned risk-negative headlines. S&P 500 Futures print 0.08% gains by the press time despite the downbeat performance of Wall Street.

Read: NZD/USD: Quiet start in Asia tests rebound from four-month low towards 0.7000