Shanghai/Tokyo — Asian stock markets dipped on Wednesday after Pyongyang abruptly called off talks with Seoul, throwing a US-North Korean summit into doubt, while surging bond yields revived concern about faster US interest rate increases that could curb global demand. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.2% as Pyongyang’s move appeared to mark a break in months of warming ties between North and South Korea and with Washington. A cancellation of the June 12 summit in Singapore could see tension on the Korean peninsula flare again even as investors worry about China-US trade tension and the sustainability of global economic growth. "This will weigh on the Korean reconstruction beneficiaries that have had a strong run on peace and even reunification hopes recently," JPMorgan analysts wrote in a note. "The broader risk for the region if talks do break down is that Trump no longer feels the need to keep China on side and could escalate trade tensions aga...
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