Implication of a conflict b/w Taiwan and Japan

===This post is not intended to cause a political argument.===

Fact:

TAIPEI (Reuters) - Taiwan recalled its foreign ministry representative in Japan on Saturday over Tokyo's handling of a ship collision in disputed waters, escalating a rare spat between two governments that normally get along.

http://in.reuters.com/article/worldN...34063420080614

Before this, a Taiwanese offical threatened Japan by saying that he would not rule out going to war with Japan.

What do you all think about what kinds of impact this news has on the currency market, especially, USD/JPY and other Yen crosses?

My main question is...is this incident going to be a factor to sell Japanese Yen and buy more US dollars for the geopolitical risks caused by the development of the news?

Again, I am not intending to cause an argument on which country is the one to be blamed on this incident.

Thank you.

Well unless there is much further escalation in tensions between the two it should only be a blip in the forex markets.

no need to worry about war between Taiwan and Japan.......both are controlled by the same people.........same with South Korea too..............

So far, it looks like this incident has not had much impact on the currency market, especially, USD/JPY and other Yen crosses...

http://www.bloomberg.com/apps/news?p...xw&refer=japan

Japan Protests Taiwan Ships Entering Disputed Waters (Correct) By Toko Sekiguchi and Takashi Hirokawa


(Corrects quote in second paragraph.)


June 16 (Bloomberg) -- Japan lodged a protest with Taiwan after ships entered waters disputed by both countries, the Japanese government's top spokesman said.


``It's deplorable that the territorial violation happened despite repeated warnings,'' Chief Cabinet Secretary Nobutaka Machimura told reporters in Tokyo. ``All those involved must maintain their calm.''


As many as 10 Taiwanese vessels temporarily entered waters claimed by Japan, Taiwan and China in the East China Sea, Kyodo News reported. The ships crossed into Japanese waters to protest a ship collision involving a Taiwanese boat last week, Kyodo cited the Japanese Coast Guard as saying.


Last Updated: June 15, 2008 23:43 EDT