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South Korea stocks, won slide after North Korea nuclear test

South Korean stocks fell on Monday and the country’s currency retreated after North Korea said it had tested a hydrogen bomb capable of being mounted on a ballistic missile.

The benchmark Kospi index opened 1.7 per cent lower in Seoul, later easing to be down 0.8 per cent. The South Korean won was down 0.8 per cent against the dollar at Won1,132.13.

North Korea said on Sunday the test was a “perfect success“. The test was estimated to have been about 10 times more powerful than previous detonations.

Jim Mattis, US defence secretary warned North Korea that any threats to the US or its allies would be met with a “massive military response”.

Other markets in region also fell following North Korea’s latest nuclear test, with Japan’s Topix index down 0.5 per cent and Australia’s S&P/ASX 200 0.6 per cent lower.