The BSE Sensex logged a fall of 156 points to end at 35,387.88 on Wednesday amid uncertainty over government formation in Karnataka and no let-up in selling by foreign investors.

Moreover, there was a weak trend at other Asian markets, tracking overnight losses at the Wall Street amid rising geopolitical tensions in the Korean peninsula after North Korea called off talks with South Korea.

Brokers said investor sentiment was subdued following uncertainty over government formation in Karnataka, which has thrown up a hung verdict.

The 30-share Sensex opened lower at 35,452.35 points and moved between 35,241.63 and 35,543.89 before settling lower by 156.06 points, or 0.44 per cent, at 35,387.88.

On Tuesday, the gauge had soared more than 400 points intra-day after the BJP emerged as the single largest party in Karnataka. However, it gave up all gains to end modestly lower after the Congress unexpectedly stitched up a post-poll alliance with the JD(S) and staked claim to form the government.

The 50-share NSE Nifty too stayed in the red through the session and finally settled 60.75 points, or 0.56 per cent down at 10,741.10. Intra-day, it moved between 10,699.70 and 10,790.45.

On the macro front, trade deficit widened to $13.7 billion in April, which further affected momentum.

Foreign portfolio investors (FPIs), who have been net sellers in the past few sessions, sold shares worth a net Rs 518.47 crore, while domestic institutional investors (DIIs) bought shares worth Rs 531.33 crore yesterday, according to provisional data.&nbsp

There was also a weak trend at other Asian markets, tracking overnight losses at the Wall Street amid rising geopolitical tensions in the Korean peninsula after North Korea called off talks with South Korea

The BSE Sensex logged a fall of 156 points to end at 35,387.88 on Wednesday amid uncertainty over government formation in Karnataka and no let-up in selling by foreign investors. Moreover, there was a weak trend at other Asian markets, tracking overnight losses at the Wall Street amid rising geopolitical tensions in the Korean peninsula after North Korea called off talks with South Korea. Brokers said investor sentiment was subdued following uncertainty over government formation in Karnataka, which has thrown up a hung verdict. The 30-share Sensex opened lower at 35,452.35 points and moved between 35,241.63 and 35,543.89 before settling lower by 156.06 points, or 0.44 per cent, at 35,387.88. On Tuesday, the gauge had soared more than 400 points intra-day after the BJP emerged as the single largest party in Karnataka. However, it gave up all gains to end modestly lower after the Congress unexpectedly stitched up a post-poll alliance with the JD(S) and staked claim to form the government. The 50-share NSE Nifty too stayed in the red through the session and finally settled 60.75 points, or 0.56 per cent down at 10,741.10. Intra-day, it moved between 10,699.70 and 10,790.45. On the macro front, trade deficit widened to $13.7 billion in April, which further affected momentum. Foreign portfolio investors (FPIs), who have been net sellers in the past few sessions, sold shares worth a net Rs 518.47 crore, while domestic institutional investors (DIIs) bought shares worth Rs 531.33 crore yesterday, according to provisional data.

Sensex sheds at 156 points on political uncertainty

World stocks rose on Friday, lifted by strong share price gains for tech giants such as Amazon and Facebook and growing hopes of a lasting peace on the Korean peninsula after a ground-breaking meeting of North and South Korean leaders.

European shares were set to end the week with a flourish too with a pan-European index set to post its fifth week of gains in a row, with the tech sector outperforming.

The latest gains are being partly spurred by forecast-beating first-quarter earnings from two of the so-called FANG tech stocks -- some of the world's largest and most influential companies by market capitalisation -- which has boosted sentiment on the technology sector worldwide.

Still, US&nbspstock futures pointed to a weaker open for Wall Street after Thursday's earnings-driven rally.

Amazon.com Inc shares jumped more than 6 per cent in after-market trading while Facebook surged 9.1 per cent on Thursday, calming worries about the fallout from its use of consumer data.

"Macroeconomic data has been soft in a number of key economies, so it is reassuring that amidst those concerns we are still seeing strong earnings numbers coming through from big ticket corporates such as Amazon and Facebook," said Investec economist Victoria Clarke.

"This is a good gauge of the broad drivers of sentiment particularly when there are those concerns about demand holding up in the face of weak economic data," Clarke added.

European tech shares rose 1 per cent to the highest in more than five weeks, buoyed also by gains in local IT and chipmaking firms such as Capgemini, ASML and Infineon.

Sterling slides

Sterling slumped to its lowest since March 9 against the dollar after data showed Britain's economy slowed much more sharply than expected in the first quarter of 2018, slashing market expectations of a Bank of England rate hike in May.

The currency was last down 1 per cent at $1.3770. It also fell 1 per cent against the euro to 87.85 pence and was on track for its worst day since November.

"A May rate hike is off the table now this pushes the hike back to August at the earliest and more likely November," said Jake Trask, a currencies analyst at OFX.

However, sterling's slide helped shares on Britain's FTSE index to rise 0.7 per cent with gains led by multi-national earners which earn a big chunk of their revenues overseas but report profits in pounds.

The weak data adds to concerns that economic growth across the developed world is running out of steam, especially after lacklustre euro zone figures earlier in the week and data on Friday showing French economic growth slowed more than expected in the first quarter.

The European Central Bank on Thursday played down concerns over softness in the euro zone economy as it sought to bolster expectations for a gradual withdrawal of monetary stimulus.

On Friday, Japan's central bank kept policy unchanged but ditched a time frame it had set for hitting its inflation target, in a surprise move analysts say is aimed at keeping market expectations for more stimulus in check.

"Within a 12 hour period it seems like the expectations are three key central banks will delay any tightening of monetary policy from what was previously expected... Equity markets should be comforted by that," said Bob Michele, CIO and head of global fixed income, currency and commodities at JPMorgan Asset Management.

Historic moment for Korea

South Korea's won led a rebound in emerging market currencies as comments from North Korea's Kim Jong Un of a "new history" between the two sides helped end a brutal week for emerging market currencies on a positive note.

North and South Korea agreed on Friday to pursue the "complete denuclearisation of the Korean peninsula" and work towards declaring an official end this year to the 1950s Korean war.

The won rose as much as 0.6 per cent against the dollar, while Asian stock markets also revelled in the glow of the summit between North and South Korea.

Seoul shares briefly rise more than 1 per cent to a one-month high, while MSCI's index of Asian shares outside Japan rallied 0.8 per cent and Japan's Nikkei share average rose 0.7 percent to two-month peaks.

The dollar meanwhile hit its highest since Jan. 12 against a basket of currencies, having benefited from the recent run in US&nbspTreasury yields -- 10-year yields hit 3 per cent this week for the first time since January 2014.

With a weekly gain of more than 1.5 per cent, the greenback is set for its best weekly performance since late 2016.

European shares were set to end the week with a flourish too with a pan-European index set to post its fifth week of gains in a row, with the tech sector outperforming

World stocks rose on Friday, lifted by strong share price gains for tech giants such as Amazon and Facebook and growing hopes of a lasting peace on the Korean peninsula after a ground-breaking meeting of North and South Korean leaders. European shares were set to end the week with a flourish too with a pan-European index set to post its fifth week of gains in a row, with the tech sector outperforming. The latest gains are being partly spurred by forecast-beating first-quarter earnings from two of the so-called FANG tech stocks -- some of the world's largest and most influential companies by market capitalisation -- which has boosted sentiment on the technology sector worldwide. Still, US&nbspstock futures pointed to a weaker open for Wall Street after Thursday's earnings-driven rally. Amazon.com Inc shares jumped more than 6 per cent in after-market trading while Facebook surged 9.1 per cent on Thursday, calming worries about the fallout from its use of consumer data. "Macroeconomic data has been soft in a number of key economies, so it is reassuring that amidst those concerns we are still seeing strong earnings numbers coming through from big ticket corporates such as Amazon and Facebook," said Investec economist Victoria Clarke. "This is a good gauge of the broad drivers of sentiment particularly when there are those concerns about demand holding up in the face of weak economic data," Clarke added. European tech shares rose 1 per cent to the highest in more than five weeks, buoyed also by gains in local IT and chipmaking firms such as Capgemini, ASML and Infineon. Sterling slides Sterling slumped to its lowest since March 9 against the dollar after data showed Britain's economy slowed much more sharply than expected in the first quarter of 2018, slashing market expectations of a Bank of England rate hike in May. The currency was last down 1 per cent at $1.3770. It also fell 1 per cent against the euro to 87.85 pence and was on track for its worst day since November. "A May rate hike is off the table now this pushes the hike back to August at the earliest and more likely November," said Jake Trask, a currencies analyst at OFX. However, sterling's slide helped shares on Britain's FTSE index to rise 0.7 per cent with gains led by multi-national earners which earn a big chunk of their revenues overseas but report profits in pounds. The weak data adds to concerns that economic growth across the developed world is running out of steam, especially after lacklustre euro zone figures earlier in the week and data on Friday showing French economic growth slowed more than expected in the first quarter. The European Central Bank on Thursday played down concerns over softness in the euro zone economy as it sought to bolster expectations for a gradual withdrawal of monetary stimulus. On Friday, Japan's central bank kept policy unchanged but ditched a time frame it had set for hitting its inflation target, in a surprise move analysts say is aimed at keeping market expectations for more stimulus in check. "Within a 12 hour period it seems like the expectations are three key central banks will delay any tightening of monetary policy from what was previously expected... Equity markets should be comforted by that," said Bob Michele, CIO and head of global fixed income, currency and commodities at JPMorgan Asset Management. Historic moment for Korea South Korea's won led a rebound in emerging market currencies as comments from North Korea's Kim Jong Un of a "new history" between the two sides helped end a brutal week for emerging market currencies on a positive note. North and South Korea agreed on Friday to pursue the "complete denuclearisation of the Korean peninsula" and work towards declaring an official end this year to the 1950s Korean war. The won rose as much as 0.6 per cent against the dollar, while Asian stock markets also revelled in the glow of the summit between North and South Korea. Seoul shares briefly rise more than 1 per cent to a one-month high, while MSCI's index of Asian shares outside Japan rallied 0.8 per cent and Japan's Nikkei share average rose 0.7 percent to two-month peaks. The dollar meanwhile hit its highest since Jan. 12 against a basket of currencies, having benefited from the recent run in US&nbspTreasury yields -- 10-year yields hit 3 per cent this week for the first time since January 2014. With a weekly gain of more than 1.5 per cent, the greenback is set for its best weekly performance since late 2016.

Tech gains, Korean talks lift world stock markets; sterling tumbles 

South Korean President Moon Jae-in credited US&nbsp;President Donald Trump on Wednesday for helping to spark the first inter-Korean talks in more than two years and warned that Pyongyang would face stronger sanctions if provocations continued.

The talks were held on Tuesday on the South Korean side of the demilitarised zone, which has divided the two Koreas since 1953, after a prolonged period of tension on the Korean peninsula over the North&#39;s missile and nuclear programmes.

North Korea ramped up its missile launches last year and also conducted its sixth and most powerful nuclear test, resulting in some of the strongest international sanctions yet.

The latest sanctions sought to drastically cut the North&#39;s access to refined petroleum imports and earnings from workers abroad. Pyongyang called the steps an &quot;act of war&quot;.

Seoul and Pyongyang agreed at Tuesday&#39;s talks, the first since December 2015, to resolve all problems between them through dialogue and also to revive military consultations so that accidental conflict could be averted.&nbsp;

&quot;I think President Trump deserves big credit for bringing about the inter-Korean talks, I want to show my gratitude,&quot; Moon told reporters at his New Year&#39;s news conference. &quot;It could be a resulting work of the US-led sanctions and pressure.&quot;

Trump and North Korean leader Kim Jong Un exchanged threats and insults over the past year, raising fears of a new war on the peninsula. South Korea and the United States are technically still at war with the North after the 1950-53 Korean conflict ended with a truce, not a peace treaty.

Basic stance

Washington had raised concerns that the overtures by North Korea could drive a wedge between it and Seoul, but Moon said his government did not differ with the United States over how to respond to the threats posed by Pyongyang.

&quot;This initial round of talks is for the improvement of relations between North and South Korea. Our task going forward is to draw North Korea to talks aimed at the denuclearisation of the North,&quot; Moon said. &quot;(It&#39;s) our basic stance that will never be given up.&quot;

Moon said he was open to meeting North Korea&#39;s leader at any time to improve bilateral ties, and if the conditions were right and &quot;certain achievements are guaranteed&quot;.

&quot;The purpose of it shouldn&rsquo;t talk for the sake of talks,&quot; he said.

However, Pyongyang said it would not discuss its nuclear weapons with Seoul because they were only aimed at the United States, not its &quot;brethren&quot; in South Korea, nor Russia or China, showing that a diplomatic breakthrough remained far off.

North Korea`s Rodong Sinmun newspaper said all problems would be resolved through efforts by the Korean people alone.

&quot;If the North and South abandon external forces and cooperate together, we will be able to fully solve all problems to match our people&#39;s needs and our joint prosperity,&quot; it said.

Washington still welcomed Tuesday`s talks as a first step towards solving the North Korean nuclear crisis. The US&nbsp;State Department said it would be interested in joining future talks, with the aim of denuclearising the North.

The United States, which still has 28,500 troops stationed in South Korea, initially responded coolly to the idea of inter-Korean meetings. Trump later called them &quot;a good thing&quot; and said he would be willing to speak to Kim.

Lee Woo-young, a professor at the University of North Korean Studies in Seoul, said it was wise of Moon to praise Trump, his sanctions and pressure campaign.

&quot;By doing that, he can help the US&nbsp;build logic for moving toward negotiations and turning around the state of affairs in the future, so when they were ready to talk to the North, they can say the North came out of isolation because the sanctions were effective.&quot;

The United States and Canada are set to host a conference of about 20 foreign ministers on January 16 in Vancouver to discuss North Korea, without the participation of China, Pyongyang&#39;s sole major ally and biggest trade partner.

China would not attend the meeting and is resolutely opposed to it, said foreign ministry spokesman Lu Kang.

&quot;It will only create divisions within the international community and harm joint efforts to appropriately resolve the Korean peninsula nuclear issue,&quot; he told a regular briefing on Wednesday.

Large Olympics delegation

Pyongyang also said it would send a large delegation to next month&#39;s Winter Olympics in South Korea.

Washington agreed with Seoul last week to postpone until after the Olympics joint military exercises that Pyongyang denounces as rehearsals for invasion. But it also said the apparent North-South thaw had not altered the US&nbsp;intelligence assessment of the North&rsquo;s weapons programmes.

The United States has also warned that all options, including military, are on the table in dealing with the North.

&quot;We cannot say talks are the sole answer,&quot; Moon said. &quot;If North Korea engages in provocations again or does not show sincerity in resolving this issue, the international community will continue applying strong pressure and sanctions.&quot;

Seoul said on Tuesday it was prepared to offer financial assistance and lift some unilateral sanctions temporarily so North Koreans could attend the Olympics. North Korea said its delegation would include athletes and officials, among others.

However, Moon said on Wednesday South Korea had no plans for now to ease unilateral sanctions against North Korea, or revive economic exchanges that could run foul of United Nations sanctions.&nbsp;

Moon also said his government would continue working towards recovering the honour and dignity of former &quot;comfort women&quot;, a euphemism for those forced to work in Japan&#39;s wartime brothels.

But historical issues should be separated from bilateral efforts with Japan to safeguard peace on the Korean peninsula, he added.

&quot;It&#39;s very important we keep a good relationship with Japan,&quot; Moon said.

On Tuesday, South Korea said it would not seek to renegotiate a 2015 deal with Japan despite determining that the pact was insufficient to resolve the divisive issue, and urged Japan for more action to help the women.

The talks were held on Tuesday on the South Korean side of the demilitarised zone, which has divided the two Koreas since 1953

South Korean President Moon Jae-in credited US President Donald Trump on Wednesday for helping to spark the first inter-Korean talks in more than two years and warned that Pyongyang would face stronger sanctions if provocations continued. The talks were held on Tuesday on the South Korean side of the demilitarised zone, which has divided the two Koreas since 1953, after a prolonged period of tension on the Korean peninsula over the North's missile and nuclear programmes. North Korea ramped up its missile launches last year and also conducted its sixth and most powerful nuclear test, resulting in some of the strongest international sanctions yet. The latest sanctions sought to drastically cut the North's access to refined petroleum imports and earnings from workers abroad. Pyongyang called the steps an "act of war". Seoul and Pyongyang agreed at Tuesday's talks, the first since December 2015, to resolve all problems between them through dialogue and also to revive military consultations so that accidental conflict could be averted. "I think President Trump deserves big credit for bringing about the inter-Korean talks, I want to show my gratitude," Moon told reporters at his New Year's news conference. "It could be a resulting work of the US-led sanctions and pressure." Trump and North Korean leader Kim Jong Un exchanged threats and insults over the past year, raising fears of a new war on the peninsula. South Korea and the United States are technically still at war with the North after the 1950-53 Korean conflict ended with a truce, not a peace treaty. Basic stance Washington had raised concerns that the overtures by North Korea could drive a wedge between it and Seoul, but Moon said his government did not differ with the United States over how to respond to the threats posed by Pyongyang. "This initial round of talks is for the improvement of relations between North and South Korea. Our task going forward is to draw North Korea to talks aimed at the denuclearisation of the North," Moon said. "(It's) our basic stance that will never be given up." Moon said he was open to meeting North Korea's leader at any time to improve bilateral ties, and if the conditions were right and "certain achievements are guaranteed". "The purpose of it shouldn’t talk for the sake of talks," he said. However, Pyongyang said it would not discuss its nuclear weapons with Seoul because they were only aimed at the United States, not its "brethren" in South Korea, nor Russia or China, showing that a diplomatic breakthrough remained far off. North Korea`s Rodong Sinmun newspaper said all problems would be resolved through efforts by the Korean people alone. "If the North and South abandon external forces and cooperate together, we will be able to fully solve all problems to match our people's needs and our joint prosperity," it said. Washington still welcomed Tuesday`s talks as a first step towards solving the North Korean nuclear crisis. The US State Department said it would be interested in joining future talks, with the aim of denuclearising the North. The United States, which still has 28,500 troops stationed in South Korea, initially responded coolly to the idea of inter-Korean meetings. Trump later called them "a good thing" and said he would be willing to speak to Kim. Lee Woo-young, a professor at the University of North Korean Studies in Seoul, said it was wise of Moon to praise Trump, his sanctions and pressure campaign. "By doing that, he can help the US build logic for moving toward negotiations and turning around the state of affairs in the future, so when they were ready to talk to the North, they can say the North came out of isolation because the sanctions were effective." The United States and Canada are set to host a conference of about 20 foreign ministers on January 16 in Vancouver to discuss North Korea, without the participation of China, Pyongyang's sole major ally and biggest trade partner. China would not attend the meeting and is resolutely opposed to it, said foreign ministry spokesman Lu Kang. "It will only create divisions within the international community and harm joint efforts to appropriately resolve the Korean peninsula nuclear issue," he told a regular briefing on Wednesday. Large Olympics delegation Pyongyang also said it would send a large delegation to next month's Winter Olympics in South Korea. Washington agreed with Seoul last week to postpone until after the Olympics joint military exercises that Pyongyang denounces as rehearsals for invasion. But it also said the apparent North-South thaw had not altered the US intelligence assessment of the North’s weapons programmes. The United States has also warned that all options, including military, are on the table in dealing with the North. "We cannot say talks are the sole answer," Moon said. "If North Korea engages in provocations again or does not show sincerity in resolving this issue, the international community will continue applying strong pressure and sanctions." Seoul said on Tuesday it was prepared to offer financial assistance and lift some unilateral sanctions temporarily so North Koreans could attend the Olympics. North Korea said its delegation would include athletes and officials, among others. However, Moon said on Wednesday South Korea had no plans for now to ease unilateral sanctions against North Korea, or revive economic exchanges that could run foul of United Nations sanctions. Moon also said his government would continue working towards recovering the honour and dignity of former "comfort women", a euphemism for those forced to work in Japan's wartime brothels. But historical issues should be separated from bilateral efforts with Japan to safeguard peace on the Korean peninsula, he added. "It's very important we keep a good relationship with Japan," Moon said. On Tuesday, South Korea said it would not seek to renegotiate a 2015 deal with Japan despite determining that the pact was insufficient to resolve the divisive issue, and urged Japan for more action to help the women.

South Korea's Moon says Trump deserves 'big' credit for North Korea talks

<a href="http://www.wionews.com/india-news/kamala-mills-fire-hotelier-arrested-for-sheltering-accused-29051">Kamala Mills fire: Hotelier arrested for sheltering accused</a>

The Mumbai Police have arrested a Juhu-based hotelier for sheltering three owners of &#39;1 Above&#39; pub, after a police probe, Vishal Kariya confessed to having sheltered the accused trio -- Kripesh Sanghvi, Jigar Sanghvi and Abhijeet Mankar -- at his Juhu residence.

&nbsp;

<a href="http://www.wionews.com/india-news/pakistan-has-suspended-military-intelligence-cooperation-with-us-defence-minister-khurram-dastgir-khan-29060">Pakistan has suspended military intelligence cooperation with </a><a href="http://www.wionews.com/india-news/pakistan-has-suspended-military-intelligence-cooperation-with-us-defence-minister-khurram-dastgir-khan-29060">US</a><a href="http://www.wionews.com/india-news/pakistan-has-suspended-military-intelligence-cooperation-with-us-defence-minister-khurram-dastgir-khan-29060">: Defence </a><a href="http://www.wionews.com/india-news/pakistan-has-suspended-military-intelligence-cooperation-with-us-defence-minister-khurram-dastgir-khan-29060">minister</a><a href="http://www.wionews.com/india-news/pakistan-has-suspended-military-intelligence-cooperation-with-us-defence-minister-khurram-dastgir-khan-29060"> Khurram Dastgir Khan</a>

Pakistan defence minister Khurram Dastgir Khan said today that his country has suspended military and intelligence cooperation with the US as relations between the two allies continued to nosedive.

&nbsp;

<a href="http://www.wionews.com/world/our-weapons-are-only-aimed-at-at-united-states-north-korea-official-29048">Our weapons &#39;are only aimed&#39; at </a><a href="http://www.wionews.com/world/our-weapons-are-only-aimed-at-at-united-states-north-korea-official-29048">United</a><a href="http://www.wionews.com/world/our-weapons-are-only-aimed-at-at-united-states-north-korea-official-29048"> States: North Korea official</a>

North Korea said after its first talks with South Korea in more than two years that it would not discuss its nuclear weapons with Seoul because they were aimed only at the United States, not its &quot;brethren&quot; in South Korea. &nbsp;

&nbsp;

<a href="http://www.wionews.com/world/dominos-ceo-patrick-doyle-to-step-down-in-june-29058">Domino&#39;s CEO Patrick Doyle to step down in June</a>

Patrick Doyle, Domino&#39;s chief executive officer will step down this June, the fast-food giant announced Tuesday, he will be replaced by Domino&#39;s current chief of international business, Richard Allison.

&nbsp;

<a href="http://www.wionews.com/south-asia/six-including-four-policemen-killed-in-quetta-blast-29034">Pakistan: Six including five policemen killed in Quetta suicide bombing</a>

Five police personnel and a passerby were killed and 16 others injured on Tuesday when a suspected suicide bomb rocked Quetta&#39;s Zarghoon road near the Balochistan Assembly building.&nbsp;

Kamala Mills fire: Hotelier arrested for sheltering accused The Mumbai Police have arrested a Juhu-based hotelier for sheltering three owners of '1 Above' pub, after a police probe, Vishal Kariya confessed to having sheltered the accused trio -- Kripesh Sanghvi, Jigar Sanghvi and Abhijeet Mankar -- at his Juhu residence. Pakistan has suspended military intelligence cooperation with US: Defence minister Khurram Dastgir Khan Pakistan defence minister Khurram Dastgir Khan said today that his country has suspended military and intelligence cooperation with the US as relations between the two allies continued to nosedive. Our weapons 'are only aimed' at United States: North Korea official North Korea said after its first talks with South Korea in more than two years that it would not discuss its nuclear weapons with Seoul because they were aimed only at the United States, not its "brethren" in South Korea. Domino's CEO Patrick Doyle to step down in June Patrick Doyle, Domino's chief executive officer will step down this June, the fast-food giant announced Tuesday, he will be replaced by Domino's current chief of international business, Richard Allison. Pakistan: Six including five policemen killed in Quetta suicide bombing Five police personnel and a passerby were killed and 16 others injured on Tuesday when a suspected suicide bomb rocked Quetta's Zarghoon road near the Balochistan Assembly building.

WION Morning News Brief, January 10, 2018

North and South Korea held their first talks in over two years on Tuesday, which Washington welcomed as a first step to solving the North Korean nuclear weapons crisis, even though Pyongyang said those were aimed only at the United States and not up for discussion.

The US&nbsp;State Department said Washington would be interested in joining future talks, but stuck to its insistence that they must be aimed at denuclearisation, showing that a diplomatic breakthrough remains far off.

In a joint statement after 11 hours of talks, North and South Korea said they had agreed to hold the military to military talks and that North Korea would send a large delegation to next month&#39;s Winter Olympics in South Korea.

However, North Korea made a &quot;strong complaint&quot; after Seoul proposed talks to denuclearise the Korean peninsula.

&quot;Clearly this is a positive development,&quot; a spokesman for the US&nbsp;State Department, Steve Goldstein, said of the joint statement while adding: &quot;We would like nuclear talks to occur; we want denuclearisation of the Korean peninsula. This is a good first step in that process.&quot;

North and South Korea said they agreed to meet again to resolve problems and avert accidental conflict, amid high tension over North Korea&#39;s program to develop nuclear missiles capable of hitting the United States.

&quot;All our weapons, including atomic bombs, hydrogen bombs and ballistic missiles, are only aimed at the United States, not our brethren, nor China and Russia,&quot; Pyongyang&#39;s chief negotiator, Ri Son Gwon, said.

&quot;This is not a matter between North and South Korea, and to bring up this issue would cause negative consequences and risks turning all of today&#39;s good achievement into nothing,&quot; Ri said in closing remarks.

The White House and State Department did not respond to requests for comment on the United States being the only potential target of North Korea&#39;s nuclear weapons.

US&nbsp;President Donald Trump and North Korean leader Kim Jong Un have exchanged threats and insults in the past year, raising fears of a new war on the peninsula.

The United States, which has 28,500 troops stationed in South Korea as a legacy of the 1950-1953 Korean War, initially responded coolly to the idea of inter-Korean meetings, but Trump later called them &quot;a good thing&quot; and said he would be willing to speak to Kim.

&quot;At the appropriate time, we&#39;ll get involved,&quot; Trump said on Saturday, although US-North Korean talks appear unlikely anytime soon, given entrenched positions on both sides.

The United States has warned that all options, including military ones, are on the table in dealing with North Korea.

Washington agreed with Seoul last week to postpone joint military exercises that Pyongyang denounces as rehearsals for invasion until after the Olympics, but the North-South thaw has not altered the US&nbsp;intelligence assessment of North Korea&rsquo;s weapons programs.&nbsp;

The consensus, according to US&nbsp;officials familiar with the classified analysis, is that Kim remains convinced the United States is determined to overthrow him and that only a nuclear arsenal that threatens America can deter that.

One official said the North-South talks were likely to follow the pattern of past diplomatic efforts, in which the North has benefited from additional food and other aid without making any concessions on the weapons front.

The additional danger now, said a second official, was that Kim would seek to use the talks to take advantage of Trump&#39;s sometimes bellicose rhetoric to try to drive a wedge between Washington and Seoul.

On Tuesday, UN&nbsp;Secretary-General Antonio Guterres welcomed the talks, particularly the agreement to hold military-to-military talks, calling this &quot;critical to lowering the risk of miscalculation&quot;.

He also welcomed North Korea&#39;s decision to send a delegation to the Olympics and said he hoped for the resumption of dialogue leading to denuclearisation.

In spite of the North Korean negotiator`s remarks, South Korea&#39;s Unification Ministry said it believed Tuesday&#39;s talks could lead to the discussion of a &quot;fundamental resolution&quot; of the nuclear issue.

&quot;We will closely coordinate with the United States, China, Japan and other neighbours in this process,&quot; it said, adding that Seoul had asked Pyongyang to halt acts that stoke tension.

Tuesday&#39;s meeting followed a year of ramped-up North Korean missile launches and its sixth and most powerful nuclear test, which prompted a US-led campaign to toughen UN&nbsp;sanctions.

High hopes

Earlier on Tuesday, Seoul said it was prepared to lift some unilateral sanctions temporarily so North Koreans could visit for the Olympics. North Korea said its delegation would include athletes, high-ranking officials, a cheering squad, art performers, reporters and spectators.

Talks to work out details would be held soon, the South&#39;s Unification Ministry said.

Tuesday&#39;s talks were the first between the two Koreas since 2015 and were held at the Peace House on the South Korean side of Panmunjom truce village.

Seoul said it proposed reunions of divided families in time for February&#39;s Lunar New Year holiday, but the joint statement made no mention of any agreement on this.

Seoul said North Korea had finished technical work to restore a military hotline, with normal communications set to resume on Wednesday.

North Korea cut communications in February 2016, following South Korea&#39;s decision to shut down a jointly run industrial park.

Seoul also said North Korea responded &quot;positively&quot; to the South&#39;s proposal for athletes from both sides to march together in the Olympic opening ceremony.

Such a joint parade has not happened since the 2007 Asian Winter Games in China.

China&#39;s Foreign Ministry said it was happy to see talks between North and South Korea and welcomed all positive steps. Russia echoed the sentiment. &quot;This is exactly the kind of dialogue that we said was necessary,&quot; a Kremlin spokesman said.

Some US-based analysts have hailed the talks as an opening for diplomacy, but others see an attempt by North Korea to weaken US&nbsp;pressure so that it is eventually accepted as a nuclear-armed state.

Evans Revere, a former senior US&nbsp;diplomat for East Asia, said that by engaging Seoul, North Korea was clearly seeking to weaken the US-South Korean alliance and it was important that Seoul had raised the nuclear issue to show it was not just a US-North Korea matter.

The US State Department said Washington would be interested in joining future talks, but stuck to its insistence that they must be aimed at denuclearisation

North and South Korea held their first talks in over two years on Tuesday, which Washington welcomed as a first step to solving the North Korean nuclear weapons crisis, even though Pyongyang said those were aimed only at the United States and not up for discussion. The US State Department said Washington would be interested in joining future talks, but stuck to its insistence that they must be aimed at denuclearisation, showing that a diplomatic breakthrough remains far off. In a joint statement after 11 hours of talks, North and South Korea said they had agreed to hold the military to military talks and that North Korea would send a large delegation to next month's Winter Olympics in South Korea. However, North Korea made a "strong complaint" after Seoul proposed talks to denuclearise the Korean peninsula. "Clearly this is a positive development," a spokesman for the US State Department, Steve Goldstein, said of the joint statement while adding: "We would like nuclear talks to occur; we want denuclearisation of the Korean peninsula. This is a good first step in that process." North and South Korea said they agreed to meet again to resolve problems and avert accidental conflict, amid high tension over North Korea's program to develop nuclear missiles capable of hitting the United States. "All our weapons, including atomic bombs, hydrogen bombs and ballistic missiles, are only aimed at the United States, not our brethren, nor China and Russia," Pyongyang's chief negotiator, Ri Son Gwon, said. "This is not a matter between North and South Korea, and to bring up this issue would cause negative consequences and risks turning all of today's good achievement into nothing," Ri said in closing remarks. The White House and State Department did not respond to requests for comment on the United States being the only potential target of North Korea's nuclear weapons. US President Donald Trump and North Korean leader Kim Jong Un have exchanged threats and insults in the past year, raising fears of a new war on the peninsula. The United States, which has 28,500 troops stationed in South Korea as a legacy of the 1950-1953 Korean War, initially responded coolly to the idea of inter-Korean meetings, but Trump later called them "a good thing" and said he would be willing to speak to Kim. "At the appropriate time, we'll get involved," Trump said on Saturday, although US-North Korean talks appear unlikely anytime soon, given entrenched positions on both sides. The United States has warned that all options, including military ones, are on the table in dealing with North Korea. Washington agreed with Seoul last week to postpone joint military exercises that Pyongyang denounces as rehearsals for invasion until after the Olympics, but the North-South thaw has not altered the US intelligence assessment of North Korea’s weapons programs. The consensus, according to US officials familiar with the classified analysis, is that Kim remains convinced the United States is determined to overthrow him and that only a nuclear arsenal that threatens America can deter that. One official said the North-South talks were likely to follow the pattern of past diplomatic efforts, in which the North has benefited from additional food and other aid without making any concessions on the weapons front. The additional danger now, said a second official, was that Kim would seek to use the talks to take advantage of Trump's sometimes bellicose rhetoric to try to drive a wedge between Washington and Seoul. On Tuesday, UN Secretary-General Antonio Guterres welcomed the talks, particularly the agreement to hold military-to-military talks, calling this "critical to lowering the risk of miscalculation". He also welcomed North Korea's decision to send a delegation to the Olympics and said he hoped for the resumption of dialogue leading to denuclearisation. In spite of the North Korean negotiator`s remarks, South Korea's Unification Ministry said it believed Tuesday's talks could lead to the discussion of a "fundamental resolution" of the nuclear issue. "We will closely coordinate with the United States, China, Japan and other neighbours in this process," it said, adding that Seoul had asked Pyongyang to halt acts that stoke tension. Tuesday's meeting followed a year of ramped-up North Korean missile launches and its sixth and most powerful nuclear test, which prompted a US-led campaign to toughen UN sanctions. High hopes Earlier on Tuesday, Seoul said it was prepared to lift some unilateral sanctions temporarily so North Koreans could visit for the Olympics. North Korea said its delegation would include athletes, high-ranking officials, a cheering squad, art performers, reporters and spectators. Talks to work out details would be held soon, the South's Unification Ministry said. Tuesday's talks were the first between the two Koreas since 2015 and were held at the Peace House on the South Korean side of Panmunjom truce village. Seoul said it proposed reunions of divided families in time for February's Lunar New Year holiday, but the joint statement made no mention of any agreement on this. Seoul said North Korea had finished technical work to restore a military hotline, with normal communications set to resume on Wednesday. North Korea cut communications in February 2016, following South Korea's decision to shut down a jointly run industrial park. Seoul also said North Korea responded "positively" to the South's proposal for athletes from both sides to march together in the Olympic opening ceremony. Such a joint parade has not happened since the 2007 Asian Winter Games in China. China's Foreign Ministry said it was happy to see talks between North and South Korea and welcomed all positive steps. Russia echoed the sentiment. "This is exactly the kind of dialogue that we said was necessary," a Kremlin spokesman said. Some US-based analysts have hailed the talks as an opening for diplomacy, but others see an attempt by North Korea to weaken US pressure so that it is eventually accepted as a nuclear-armed state. Evans Revere, a former senior US diplomat for East Asia, said that by engaging Seoul, North Korea was clearly seeking to weaken the US-South Korean alliance and it was important that Seoul had raised the nuclear issue to show it was not just a US-North Korea matter.

US hails Korea talks, despite North's rejection of denuclearisation

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US hails Korea talks, despite North's rejection of denuclearisation