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South Korea is worried North Korea may conduct a surprise launch in a follow-up to its Jan. 6 nuclear test, Defense Ministry spokesman Kim Min Seok told reporters in Seoul.

South Korean defense stocks rose on the report. Speco Co., which makes military products, rose 6 per cent, the biggest gain since Jan. 8; and Firstec Co., a weapon maker, climbed as much as 4.9 per cent. By comparison, the benchmark Kospi index was little changed.

International trade bans on arms and luxury items have not convinced North Korea to halt its development of weapons of mass destruction and return to disarmament talks that broke down in 2009.

On a trip to Beijing on Wednesday, U.S. Secretary of State John Kerry failed to secure China’s support for tougher sanctions against North Korea over its latest nuclear test, with the countries agreeing in Beijing only to pursue a new security council resolution. China wields a veto and supplies most of North Korea’s food and energy imports.

According to the New York Times, Kerry cautioned China “that North Korea was moving ahead with an effort to manufacture a nuclear weapon small enough to fit atop a long-range missile that could reach U.S. shores, and said the United States “will do what is necessary to protect the people of our country.”

Kerry told a join press conference with the Chinese foreign minister, Wang Yi, that “this is a threat the United States must take extremely seriously….The United States will take all necessary steps to protect our people and allies. We don’t want to heighten security tensions. But we won’t walk away from any options.”

With files from Heejin Kim, Andy Sharp, Maiko Takahashi and National Post staff.