Asian stock markets fell in early trade Wednesday as sentiment was weighed down by a tense standoff between North and South Korea after a deadly exchange of artillery fire.
South Korea’s benchmark Kospi index opened sharply lower, falling 3.3 percent in early trade before recovering to 1.3 percent lower at 1,903.51.
Japan’s Nikkei 225 stock average fell 1.3 percent to 9,984.12 in early trade, falling below the sentimental 10,000 mark. Shares in Australia were also down.
The losses came a day after North Korea and South Korea traded artillery volleys across their border, an exchange that killed at least two South Korean marines.
The incident brought tensions between the countries to their highest level in over a decade, and fears of further violence cast a pall over Asia.
Overnight on Wall Street, the Dow Jones industrial average fell 1.3 percent to 11,036.37, while the broader Standard & Poor’s 500 lost 1.4 percent to 1,180.73.
In currencies, the dollar rose slightly to 83.26 yen, from 83.16 overnight in New York. The euro rose against the greenback, to $1.3390 from $1.3363.