U.S., South Korea Hold Live- Fire Exercises; Recovery in World Stocks Markets
ALLEN: We turn our attention to the peninsula where they are carrying out live-fire exercises, held every year by the United States and South Korea. Kathy Novak is in Seoul.</s>KATHY NOVAK, CNN CORRESPONDENT (voice-over): This is not your average target practice. South Korean F-15 fighter jets that can take down a large number of North Korean fighters at once, E 737s that can detect movement across the air space from the South Korean border, Syrian helicopters that launch flairs to evade North Korean missiles and drop off command dose to infiltrate enemy lines. "Our soldiers are ready and able," says the Italian commander, "with the will and courage to fight against the enemy." (on camera): These exercises bring together U.S. and South Korean fire power preparing to how to respond to a North Korean provocation and signaling all-out war.</s>NOVAK (voice-over): But two can play at this war game. At the Korean peninsula, North Korea invented the game, parading its 1.2 million active troops and weaponry of its own under the watchful and unforgiving eye of supreme commander, Kim Jong-Un. Anti-tank missiles manned by loyal servants of the Korean Peoples' Army, submarine that Pyongyang claims can launch ballistic missiles. 70 percent of the fleet deployed during the recent crisis. And artillery like the kind the U.S. says was aimed towards propaganda speakers on the border. South Korea fired back. Watching this drill, it's clear these shells don't miss. Suggesting when dozens of South Korean rounds landed in an empty field north of the DMZ that's exactly what they were aiming at. They have the fire power but the game of war this in the peninsula is more about showing off the fire power than actually using it. (on camera): This is not only a military exercise. It's a show. Members of the public have even been invited to watch the display. (voice-over): Nothing like patriotic music to go with your show of fatal force and with every ground-shaking, eardrum-shattering boom of artillery in a perfect "V" formation, enthusiastic applause from the crowd. It may seem ridiculous, but it works. "I felt really anxious living here," she says, "but after the performances, I'm not anxious at all. North Korea can't defeat us." Satisfied theater-goers at a very dangerous show. Kathy Novak, CNN, South Korea.</s>ALLEN: Quite a show of military might on both sides of the DMZ there. More military exercises on the Korean peninsula are wrapping up today. For more, let's bring in Kyung Lah, live from Seoul. These exercises have been ongoing, taking a pause during the particular tension and threats by North Korea, Kyung, and finally the talks. So it wasn't like these exercises were the sole responsibility for the tensions this year.</s>KYUNG LAH, CNN CORRESPONDENT: It was mainly that it was a piling on of everything that was already happening here on the peninsula. The specific exercises that we're talking about happened over 12 days, they were computer-generated and what the joint forces were doing led by the United States is basically looking at what would the response be from South Korea and the United States should North Korea attack. That was the exercise and that is something that happens every single year. North Korea knows this, they expect this. But given what was already happening on the peninsula w, that a land mine exploded, something extremely rare, that they had responded by putting up speakers blasting anti-North Korea news, pop music, what we will refer to as propaganda from South Korea, all of this piling on with the joint U.S./South Korea exercises. That's really what sort of brought this to a higher level. That's what led to all of the concern, the joint drills ending today after 12 days -- Natalie?</s>ALLEN: People there probably, even though they like it as we just heard in Kathy's piece, because it gives them comfort, there's been so much tension there. Perhaps this will herald a little more stand down on that. We saw that both sides got together. They held two meetings to talk about their differences. Is there any more of that expected?</s>LAH: There's nothing specifically planned right now. But those marathon sessions, they were basically a gateway into more talks. There are underlying issues, persistent issues here on the peninsula that talks are hoping will be a break through to get at those issues. Specifically, what South Korea really wants is to try to conduct family reunions. Families that have been separated since the start of the Korean War. That's 65 years ago. These relatives are dying and they want to have these last meetings before that happens. That's what South Korea wants. North Korea wants a dialogue so they can get more financial assistance. Both sides have come to the table. Talks hopefully will happen in the future. That's what those marathon talks were about. Cooling things off initially and then leading to more talks down the line -- Natalie?</s>ALLEN: We certainly hope those family reunions get to take place and we hope that our viewers saw your poignant, touching story when you interviewed these elderly people in the United States who have not seen their children in decades. And we certainly hope there are more of those reunions to take place. Hopefully, that story is on CNN.com. Kyung Lah, thank you. One of the student leaders of last year's pro democracy protests in Hong Kong was in court Thursday to formally face charges in the movement that brought parts of the city to a stand still for more than two months. 18-year-old -- yes, just 18 -- Joshua Wong was charged with unlawful assembly and inciting others to participate. He also faces charges of obstructing police at another demonstration. Wong says he does not regret what he did, even if he does have to serve time in jail. Financial markets in the Asia-Pacific region are extending their winning streak with more gains today. Trading has just ended in Tokyo and Sydney. And the Nikkei finishing up 3 percent. And Australia's ASX 200 closing up a half percent. The Shanghai up 2.89 percent. And Hong Kong is up .54 percent. So the green arrows continue. And on Wall Street, stocks surge for the second day in a row. Dow finishing Thursday up 369 points. Let's bring our Asia-Pacific editor Andrew Stevens in. He is live from Hong Kong to break down these numbers for us. Hello, Andrew.</s>ANDREW STEVENS, CNN ASIA PACIFIC EDITOR: Hello, Natalie. Yes. You showed the key to driving what's been happening in Asia-Pacific markets today. Take a look at that Dow streak, that Dow Wall Street number. A big boost thereafter, revision of economic growth in the U.S. sharply higher, so the U.S. economy, world's biggest, really, is motoring on very, very nicely. Combine that with people now thinking there's unlikely to be an interest rate rise in the U.S. soon and to get a powerful rally on Wall Street, which flows through very much into the Asia-Pacific markets. And if you take a look at someone like Tokyo, interesting behind the numbers there, Japan was up sharply. And it was being led by the commodities companies, like Mitsubishi, like Mitsui. They are big companies. It is important they're up. Because what it is saying is that the growth from the in the U.S. is offsetting any slow down in China, which means there will still be a demand for raw materials, hence commodity prices are going up. That is sort of what is going on behind the scenes if you like. So the Shanghai is up by 3 percent. Second day in a row, still in positive territory, and now trading to go there. But if you look at the markets over here -- we have been talking a lot about the roller coaster the last five days, Natalie. But if you look along the term, that red dot there, that 43 percent, what that tells you is that over the year, the past 12 months, Shanghai is still up by 43 percent. So there are still profits in that market for some investors. It has come off the top sharply down by 40-odd percent since June, but you can read that as it's still got a long way to fall but there are still people in there with some sort of profits.</s>ALLEN: Looking at that right there, looks like a mountain peak with a bit of a descent lately.</s>STEVENS: I'm sure there's a technical term for that.</s>ALLEN: Yes. You won't get any technical terms for me on the money end. I leave that up to you. Andrew Stevens, watching it for us there in Hong Kong. Thanks, as always. We will have your top stories, right after this.