Stock market futures in US edge up as tensions ease over Kim Jong Il's passing. Asia markets close lower, but stock market in Germany, Britain, and France recover.
The killing of a Korean coast guard commando by a Chinese commercial fishing captain is just the latest in a series of clashes, and reinforces popular Korean belief that China is a threat.
A new trade pact with South Korea and a state dinner for President Lee Myung-bak highlights the growth of the US-South Korea alliance, which some say has never been stronger.
Former President Jimmy Carter arrived in North Korea on Tuesday for talks aimed at reducing tensions with North Korea. This trip looks similar to his first visit in 1994.
North Korea kept up its harsh rhetoric Friday, indicating that it saw upcoming military exercises as fresh provocation. US Gen. Walter Sharp toured the island area attacked by the North on Tuesday.
North Korean attack presents America with a sudden and serious geopolitical challenge. The overriding US goal is to prevent further escalation of the conflict.
South Korea said Wednesday it will blacklist 102 Iranian firms and 24 people in response to US pressure to sanction Iran over its nuclear program.
Secretary of State Hillary Clinton goes to South Korea Wednesday. But Friday's visit to Seoul by China's premier may do more to determine whether tensions keep rising between North Korea and South Korea.
The Pentagon announced Monday that it will conduct two joint naval exercises with South Korea in response to confirmation that North Korea was responsible for the warship Cheonan sinking.