Two Koreas trade fire, spooks markets

And now North Korea starts to get Testy .
Little Kimmie must be getting Desperate .


SEOUL (Reuters) - North and South Korea exchanged artillery fire near their disputed sea border on Wednesday, the second time in three months the rivals have clashed and briefly sending prices down on jittery Seoul financial markets.

Analysts doubted the latest clash would escalate and saw it more as an attempt by Pyongyang to stress the instability on the Korean peninsula and press home its demand for a peace deal that would open the way to international aid for its ruined economy.

South Korea's Joint Chiefs of Staff said the North fired artillery shots from land toward the South but landing on its side of the disputed sea border off the west coast.

South Korea returned fire from its coastal artillery.

The presidential Blue House said both sides fired into the air and there were no casualties, according to Yonhap, adding it had called a meeting of top national security officials.

North Korean state media made no comment on the incident.

Earlier this week it accused the South of declaring war by saying it would launch a pre-emptive strike if it had clear signs the North was preparing a nuclear attack.