I dont know how the security situation in Asia can get any worse. What has effectively hapenned is that in making itself a new nuclear state North Korea have spawned the advent of maybe two more nuclear staes. Namely Japan and Korea. Both of them have the technical experience to reach the nuclear goal real fast if they want to. Maybe Japan will not go nuclear but even then it will definietly ease controls on its armed forces.
The situation for India is a rather curious one. There will be additional pressure on the American government to cancel the nuclear treaty with India as one of the arguments that was used against this treaty was that giving preferential treatment to India might spawn new nuclear states. But then India can always argue back that India went for tests as it was not a member to the NPT while North Korea inspite of being a member had broken the treaty.
More pressure needs to be exerted on North Korea. Maybe sanctions from Russia and China should do the trick as it is basically oil and help from these countries that is keeping “dear leader” Kim Jong II.