Japan

S&P futures are higher in early Wednesday trading, alongside Asian stocks and European bourses, both solidly in the green as the EURUSD drifts below the 1.20 "redline" while the dollar rebounds off a two and a half year low following the US "measured" response to North Korea’s missile test, which soothed jittery investors who now turn their focus to US economic data. Equity indexes in Japan, Hong Kong and South Korea also rose while 10Y US Treasuries are steady before the release of ADP employment and GDP data, both of which are expected to show an increase.

Just when it seemed that a full day may pass without some diplomatic fiasco between North Korea and the US sending stocks surging on rising risks of World War III, moments ago North Korea's state-run news agency KCNA issued a statement quoting Kim Jong Un, who said that "the current ballistic rocket launching drill like a real war is the first step of the military operation of the KPA in the Pacific and a meaningful prelude to containing Guam" and added the necessity to "positively push forward the work for putting the strategic force on a modern basis by conducting

Gold Surges 2.6% After Jackson Hole and N. Korean Missile

“Financial markets think the only realistic option for the U.S. and North Korea will be to sit down and talk at some point because other options are too costly for everyone involved. But no one can rule out the risk of accidents. Markets think the chicken game will continue for now and North Korea will remain a risk.”

      - Masayoshi Kichikawa, chief strategist at Sumitomo Mitsui.

Live Feed from NHK (in Japanese)

http://www3.nhk.or.jp/news/realtime-parts/player-live.html 

* * *

Update 4: S.KOREA MILITARY IS RAISING ALERT AFTER N.KOREA MISSILE: YONHAP

* * *

Update 3: According to Richard Haass, president of the CFR, the "N. Korea missile test over Japan will stimulate missile defense buildup as well as intensify consideration of preventive military action"