US President Donald Trump's words have triggered strong response from North Korea, escalating of tension in East Asia. On August 10, the Asian and European stock markets fell across the board, the three major US stock index have collectively plunged, being the largest single-day decline since May; the Dow drops 200 points, the Nasdaq drops 2%, while the "panic index" VIX skyrocketed 44.37 %, closing at 16.04, the highest since November 20, 2016 which was the US election day. The risk of global capital markets is on the rise.