Reuters reporting a few hours ago
The U.S. military said in a statement that the B-52 is based in Guam and capable of carrying nuclear weapons. It was accompanied by two fighter planes, a U.S. F-16 and a South Korean F-15, in a low flight over Osan Air Base.
Osan is south of Seoul and roughly 100 km (62 miles) from the North Korean border. The flight was "in response to recent provocative action by North Korea" said U.S. Lt. Gen. Terrence O'Shaughnessy.
"The United States remains steadfast in its commitment to the defense of the Republic of Korea (South Korea) and to maintaining stability on the Korean Peninsula, to include extended deterrence provided by our conventional forces and our nuclear umbrella."
According to South Korea's Yonhap news agency the United States is also considering sending a nuclear-powered aircraft carrier to waters off the Korean peninsula next month to join a naval exercise with Seoul. However, U.S. Forces Korea officials said they had no knowledge of the plan
Reuters has more on the story here
Whilst it all may be a large degree of posturing on both sides the threat of escalation is real and we have seen the recent risk-off effect and safe-haven demand, for yen particularly which has seen downward pressure on core pairs. This latest development can only add to the markets' fragile state.
US deployment of a B-52 bomber isn't going to help calm markets
