Japan’s Iwaya: S. Korean decision to end intelligence pact regrettable

Japanese Defence Minister Iwaya said on Friday South Korea’s decision to end an intelligence-sharing pact between the East Asian neighbours was extremely regrettable, as Reuters reports.

This comes after South Korea on Thursday, announced that it is ending an intelligence-sharing agreement with Japan, in the face of the ongoing Japan-South Korea trade conflict.

Japan-South Korea trade escalation could have a major impact on the risk sentiment in Asia. However, the markets ignore the developments so far, as the attention remains on the Jackson Hole Symposium and Fed Chair Powell’s speech for fresh direction on the US interest rates outlook.

• S. Korea central bank (BOK): Japan’s export curbs could be more damaging to local economy than tariff hikes