North Korea 'should avoid provocative actions'

US President Barack Obama has signed an executive order mandating new financial sanctions on North Korea, senior administration officials say.

The sanctions will hit eight North Korean "entities" and four individuals, targeting the trade in arms, luxury goods and narcotics.

The US State Department Spokesman P J Crowley said that the US was prepared to work with North Korea but that it "has to demonstrate to us that such engagement would be fruitful".