U.S. Navy Destroyer Sails Within Reach Of Disputed Chinese Territory: Reuters

By Sara Sjolin Markets MarketWatch Pulse

A U.S. Navy destroyer on Thursday came within 12 nautical miles of a Chinese island in the South China Sea as it carried out a "freedom of navigation operation," according to Reuters. Citing U.S. officials speaking on condition of anonymity, the newswire said USS John S. McCain sailed close to Mischief Reef in the Spratly Islands, an area which China is in a territorial dispute over with its neighbors. The operation comes as tensions in the region remain escalated, with U.S. President Donald Trump seeking China's cooperation in adding pressure on North Korea. Investors have in recent days fled so-called risk assets on concerns a dispute between the U.S. and North Korea will end in a full-fledged war.

Continue Reading Below

Copyright © 2017 MarketWatch, Inc.