North Korea's leader, Kim Jong Un, will not proceed with his plan to launch missiles toward the U.S. Pacific territory of Guam, as he monitors what the U.S. does next, according to North Korea's state media, Reuters reported.

Stocks took a hit last week as tension between the U.S. and North Korea surged after North Korea threatened to attack Guam, following a statement from U.S. President Donald Trump that the U.S. would respond with "fire and fury" to further provocations from Pyongyang.

U.S. stock markets rallied Aug. 14 amid signs of an easing in tension.

Meanwhile, South Korean President Moon Jae-in said there cannot be any military action without Seoul's consent and South Korea would seek to prevent war by all means.

China on Aug. 14 extended a ban on several imports from North Korea, in line with tougher sanctions recently adopted by the United Nations.