Kim Jong Il has died

[Yelnoc]

Asian stock indexes are already feeling the pain. Korea's Kospi tumbled 5% after the announcement, and other East Asian markets are following suit. China's Shanghai index is already down by 2.5%, so who knows what will happen once markets reopen.

Wait, why would the death of the leader of North Korea, the most isolated country in the world, effect stocks?

[Yelnoc]

-snip-

Perhaps the state can continue to function without an effective head of government if Kim Jong-un proves to be a lame duck.  But factionalism in the government, in the military, or in some cross section of both could boil over into an all out power struggle without some arbiter (like the "Dear Leader").  Of course it is widely speculated that Kim Jong-un's Uncle is the real power behind the throne, but we have no idea how secure his position is.  As you point out, Kim Jong-un's only qualification to the throne is ideological; North Korea is not a monarchy.  Certain generals may decide they are tired of taking orders from lunatics.