27th May, 2010 - Stocks plunged on fear of tension

Major stock markets in asia yesterday plunged to 10 months low as tension between South and North Korean rised. North announced to sever all links with South and cut all communication channels that strained the relationship. US and South planned two anti-submarine exercises off the Korean Peninsula to showcase power "to deter future agression", and US also appealed Beijing, the only political ally of North Korean, to help pacify the strained relationship. But Beijing's vague stance implied that China refused to give a assertive judge on the issue.