North Korea launched a second missile over Japan and into the Pacific Ocean last night, according to officials from South Korea and Japan.
The move increases tensions in the region, following Pyongyang's recent testing of its most powerful bomb.
The Japanese Prime Minister Shinzo Abe was defiant, saying that North Korea "has no bright future" if it continues to act the same way.
US Secretary of State Rex Tillerson said it was primarily up to China and Russia to respond by imposing fresh sanctions on North Korea.
He said that China supplies North Korea with most of its oil and that Russia is the largest employer of North Korean forced labour.
The missile was reported to have launched at about 6:57 a.m. local time in North Korea, about 23.30 BST last night. It travelled 3,700km, further than previous tests, before landing in the sea off Japan's second largest island Hokkaido.
Markets in Japan held up in the face of the news, opening slightly down but climbing 0.57 per cent over the course of the day.
The US dollar also initially faced pressure, but was up against all G10 currencies. Gold gained as investors erred on the side of safehavens.