• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

South Korean political unrest jolts Asian stocks, triggers market volatility

by December 4, 2024
written by December 4, 2024

Asian markets were rattled on Wednesday following political upheaval in South Korea, where a brief imposition of martial law created uncertainty across financial markets.

The South Korean won saw volatile trading, briefly strengthening on suspected intervention but remaining near its two-year low against the dollar.

Meanwhile, the benchmark KOSPI index dropped nearly 2%, cementing its position as Asia’s worst-performing stock market this year.

The MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.32%, weighed down by a decline in top constituents like Samsung Electronics.

Other Asia-Pacific markets traded mostly lower as investors responded to political developments in South Korea and fresh economic data from the region.

Japan’s Nikkei 225 slipped 0.4%, while the broader Topix index also declined by 0.4%.

In contrast, Hong Kong’s Hang Seng Index edged up 0.1%, bucking the broader regional trend. Mainland China’s CSI 300 dipped 0.2%, reflecting cautious sentiment among investors.

Meanwhile, Australia’s GDP data revealed slower-than-expected economic growth in the third quarter. Persistent inflation and elevated borrowing costs continued to weigh on the economy, dampening investor confidence.

The S&P/ASX 200 in Australia dropped 0.38%, closing the trading session at 8,462.6.

South Korean stocks experienced significant volatility overnight in the US markets as political unrest gripped the world’s 13th-largest economy.

The iShares MSCI South Korea ETF (EWY), which tracks over 90 large and mid-cap South Korean companies, plunged as much as 7% during trading, hitting a 52-week low.

However, the ETF pared losses later in the session, closing down 1.6% after President Yoon announced the lifting of his emergency declaration, following the National Assembly’s vote to overturn his martial law decree.

In contrast, U.S. markets were steadier.

The S&P 500 edged up 0.05%, while the Nasdaq Composite gained 0.4%, with both indexes reaching record highs.

The Dow Jones Industrial Average, however, lagged, slipping nearly 0.2%.

Government intervention to stabilize markets

In response to the turmoil, South Korea’s finance ministry announced readiness to inject “unlimited” liquidity into financial markets.

Reports indicated that the financial regulator had prepared a 10 trillion won ($7.07 billion) stock market stabilization fund.

The finance minister addressed the media early Wednesday, assuring swift measures to prevent prolonged instability.

Charu Chanana, Chief Investment Strategist at Saxo, told news agency Reuters:

Korean authorities are acting decisively to stabilize the market. While the initial shock might push investors toward safer assets, the long-term impact is expected to be contained.

Global impacts and broader market trends

The uncertainty from South Korea added to existing global market jitters, including political unrest in France.

The euro edged lower by 0.11%, trading at $1.04975, as French lawmakers prepared for critical no-confidence votes against Prime Minister Michel Barnier’s coalition.

French bond futures fell 0.13%, while European stock futures slipped 0.14%.

Analysts warned that a collapse of the French government could widen bond yield spreads, further pressuring the euro.

On the macroeconomic front, US markets remain focused on upcoming Federal Reserve cues.

Recent labor market data showed an orderly slowdown, with job openings increasing in October and layoffs seeing their sharpest drop in 18 months.

Markets are pricing in a 72% probability of a 25-basis-point rate cut at the Fed’s next meeting, with more cuts expected in 2024.

Federal Reserve Chair Jerome Powell’s comments on Wednesday will likely shape near-term market sentiment.

Commodities and currency movements

The dollar index rose 0.12% to 106.45, buoyed by safe-haven demand amid global uncertainties.

Gold prices slipped 0.17% to $2,639 as the dollar strengthened.

Oil prices remained stable after a 2% gain on Tuesday, fueled by geopolitical tensions in the Middle East and anticipation of OPEC+ extending supply cuts.

As political tensions in South Korea ease, focus shifts to global central bank policies and geopolitical developments.

Investors will watch closely for signs of stabilization in Asian markets and potential knock-on effects on global financial conditions.

The post South Korean political unrest jolts Asian stocks, triggers market volatility appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Barclays settles $17.7 billion debt sale lawsuit for $19.5 million amid securities fraud claims
next post
Chinese industry groups claim US chips are ‘no longer safe’: here’s why

related articles

Asian markets close: Nikkei, Kospi down; Sensex closes...

May 19, 2025

Qualcomm unveils AI chips for data centres with...

May 19, 2025

Best crypto to buy now: Bitcoin Pepe leads...

May 19, 2025

JPMorgan cuts Netflix rating, citing balanced risk-reward post-rally;...

May 19, 2025

Bitcoin ETF open interest dips 5% to $29.47B...

May 19, 2025

US stocks slip in the red on Monday:...

May 19, 2025

Should Klarna IPO remain on watch list after...

May 19, 2025

Why this brokerage downgraded UnitedHealth’s rating to ‘hold’

May 19, 2025

Nvidia opens NVLink Fusion ecosystem, expands Taiwan footprint...

May 19, 2025

Cathie Wood says Trump’s tariffs could unlock tech...

May 19, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Trump offers Iran choice: Drop nuclear weapons or face ‘maximum pressure’

    May 13, 2025
  • Heritage rips Harris’ ‘dangerously liberal’ policy record with new website, 6-figure outreach to independents

    August 28, 2024
  • Vince McMahon settles with SEC over hush money agreements as civil assault case continues

    January 11, 2025
  • Trump’s massive 46% Vietnam tariffs could hit Nike, American Eagle and Wayfair

    April 3, 2025
  • FBI investigating rise in swatting incidents after several conservatives targeted, Kash Patel says

    March 15, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (4,723)
  • Investing (624)
  • Stock (773)

Latest Posts

  • Melania Trump to release ‘Collector’s Edition’ of memoir featuring images photographed by former first lady

    October 16, 2024
  • Trump admin aims for killing blow to independence of ‘Deep State’ agencies

    February 17, 2025
  • ‘Of course I support the pardon of my son,’ Jill Biden tells reporter

    December 2, 2024

Recent Posts

  • UN said to be stalling reforms in hopes Democrats flip House in midterm elections

    May 16, 2025
  • Greene calls for yanking FDA approval of COVID-19 vaccines: ‘Causing permanent harm and deaths’

    March 21, 2025
  • Harris likens Trump to Hitler in scathing remarks, says he wants same military loyalty as German dictator

    October 24, 2024

Editor’s Pick

  • Why Putin prefers Harris over Trump in the White House

    July 26, 2024
  • Trump official travels to Venezuela to negotiate deal for deporting Tren de Aragua gang members

    January 31, 2025
  • Trump, Harris in dead heat in poll of 7 critical battleground states

    August 9, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock