Investing.com - Asian shares nudged higher on Monday, taking a wait-and-watch approach to a ballistic missile test by North Korea at the weekend that Pyongyang said was a success and paved the way or the use of solid fuel, nuclear weapon capable launch systems.
The Nikkei 225 rose 0.47%, while the S&P/ASX 200 gained 0.64%. In China, the Shanghai Composite rose 0.66%.
North Korea fired a ballistic missile into the sea on Sunday morning, the first such test since President Trump was elected. This would be the first test of Trump's pledges to get tough on the hermit state, and comes on the heels of Trump's weekend meeting with Abe and his phone call with Chinese President Xi Jinping last Friday.
South Korea's Kospi slipped 0.07%, as the market grapples with North Korea's missile test on Sunday morning.
South Korea's finance ministry said it would act swiftly in case financial markets show signs of volatility in the wake of North Korea's missile launch on Sunday.
Samsung Group leader Jay Y. Lee was summoned again by the special prosecutor's office for further questions on bribery charges related to a political scandal involving President Park Geun-hye. Last month, Lee was questioned for more than 22 hours, but a court rejected a warrant to arrest him.
Samsung Electronics (KS:005930) fell 1.15%, while Samsung Engineering lost 1.95% and Samsung C&T plunged 2.35%.
Japan's GDP grew at an annualized rate of 1.0% in the fourth-quarter, below a Reuters poll estimates of 1.1%. This week, the UK and China are to release what will be closely watched data on inflation. Meanwhile, Federal Reserve Chair Janet Yellen is due to testify to Congress for the first time since Donald Trump entered the White House.
Last week, U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe delivered a joint statement discussing their trade relationship. At a joint news conference with Japan’s prime minister, Trump avoided repeating accusations that Tokyo uses monetary policy to devalue its currency to the disadvantage of the U.S. and takes advantage of U.S. security aid.
Also last week, Trump indicted that his administration would soon reform tax policy and announce a “phenomenal” package within weeks.