Now that is a rattling sabre. While markets for now are seemingly shrugging off this 'fly-by', we suspect the people of Okinawa were more than a little surprised:
- NORTH KOREA LAUNCHED ROCKET AT 9:51 AM LOCAL TIME: YONHAP
- N. KOREA ROCKET LAUNCHED IN SOUTHERLY DIRECTION,JAPAN GOVT SAYS
- N. KOREA ROCKET PASSES OVER JAPAN'S OKINAWA, NHK SAYS
- JAPAN GOVT: NO ORDER GIVEN TO SHOOT DOWN N.KOREA ROCKET
- N. KOREA ROCKET EXPECTED TO FALL IN SEA EAST OF PHILIPPINES:NHK
What is most surprising is not the rocket launch: it was largely expected and overdue after the humiliation from the last one; it is that Korea has brazenly defied US warnings and the threat of sanctions just to make a rather meaningless political point. The imminent escalation in sanctions and N.Korea's response is what is the true variable here, confirmed by the markets who have not even blinked as a result of the rocket launch.
From BBC: 
North Korea has launched a long-range rocket, South Korean news sources have reported.
A previous launch in April failed when the rocket broke up after take-off.
North Korea says it plans to put a satellite into space, but many countries believe the tests are a cover for weapons development.
The US and other nations had previously warned the launch would constitute a test of long-range missile technology banned under UN resolutions.
South Korean television network YTN said the rocket was launched from a site on the west coast of the North.
The Japanese government, which put its armed forces on alert ahead of the launch, said the missile appears to have passed over Okinawa.
It said it had not attempted to intercept the rocket.
The rocket was scheduled to pass between the Korean peninsula and China, with a second stage coming down off the Philippines before launching the satellite into orbit.