The pariah state has produced a nuclear weapon that can fit inside its missiles, NBC News confirmed Tuesday, citing a U.S. intelligence official. The country is also seriously considering a strike on Guam, reported a state media outlet. In response, President Donald Trump warned that such threats "will be met with fire and fury like the world has never seen."
The tough rhetoric puts China in a tough position: The world's second-largest economy has trade ties and shares a border with North Korea. And the U.S. has pressured China to squeeze North Korea more to back down on threats. But on Wednesday, China's stock markets were little changed in morning trading as investors largely ignored it all.
"It's just one of those things that's impossible to price, so markets have become inured to the whole thing over many years," said Andrew Polk, co-founder and economist at Beijing-based research firm Trivium China.
"The stock market in China is weird because it reacts to liquidity and policy, but it often has the inverse reaction ... so on good economic data, you [might] see a selloff in the markets, because markets expect less support from the government," he said. That happened a few weeks back, when second-quarter GDP growth came in better than expected at 6.9 percent, but investors still sent stocks down that day.