North Korea fired a short-range missile into the Sea of Japan, rattling Asian financial markets and fraying nerves as US Secretary of State Colin Powell campaigned for support for the US approach over the North's nuclear weapons drive.
Military authorities in Japan and South Korea said North Korea launched an anti-ship missile Monday from a northeastern coastal area into the Sea of Japan.
North Korea said it was unable to confirm that a missile had been launched, China's Xinhua news agency said in a report from Pyongyang, citing a foreign ministry spokesman.
A US administration official said Washington believes "this was a launch of a shorter-range tactical missile," not a ballistic one.
The missile launch came ahead of the inauguration of Roh Moo-hyun as South Korean president who met Powell following the ceremony to discuss the North's nuclear weapons drive.
Powell played down the significance of the missile launch, repeating the US rejection of the North's demand for direct dialogue with Washington.
"It seems to be a fairly innocuous kind of test," Powell said, noting that North Korea had advised mariners of the possibility of such an event.
"I didn't find it particularly surprising or shocking or disturbing," said Powell, as the US State Department announced details of the resumption of food aid to North Korea.



