Global Markets:
- Asian Stock Markets : Nikkei up 0.08%, Shanghai Composite up 0.07%, Hang Seng up 0.34% ASX down 0.38%
- Commodities : Gold at $2670.35 (0.14%), Silver at $31.49 (0.18%), Brent Oil at $73.74 (0.26%), WTI Oil at $70.27 (0.19%)
- Rates : US 10-year yield at 4.231, UK 10-year yield at 4.242, Germany 10-year yield at 2.055
News & Data:
- (USD) JOLTS Job Openings 7.74M vs 7.51M expected
Markets Update:
South Korean markets faced a turbulent opening on Wednesday following a day of political unrest. President Yoon Suk Yeol briefly imposed martial law before lifting it, triggering a 1.8% drop in the Kospi index and a 2.4% decline in the Kosdaq. Protestors and opposition parties intensified their calls for Yoon’s resignation, while a coalition of opposition lawmakers is set to propose an impeachment bill. Reports also indicated that Yoon’s chief of staff and senior secretaries have offered to resign collectively.
In response to fears of financial instability, the Bank of Korea held an emergency meeting, pledging measures to stabilize the market. It committed to boosting short-term liquidity and providing special loans if needed. Additionally, South Korea’s financial regulator announced its readiness to deploy a 10 trillion won ($7.07 billion) stock market stabilization fund. Foreign exchange authorities were also suspected of intervening in the currency market to limit the Korean won’s decline.
The political developments in South Korea reverberated across Asia-Pacific markets. Japan’s Nikkei 225 and Topix indices both fell by 0.4%, while Hong Kong’s Hang Seng index edged up 0.1%. Mainland China’s CSI 300 slipped 0.2%, and Australia’s S&P/ASX 200 declined 0.38% as slower-than-expected third-quarter GDP growth weighed on sentiment. Elevated borrowing costs and persistent inflation were cited as key factors affecting Australia’s economy.
In the U.S., South Korea’s political turmoil impacted the iShares MSCI South Korea ETF (EWY), which tracks South Korean stocks. The ETF plunged 7% to a 52-week low before recovering to close down 1.6%. Meanwhile, the S&P 500 inched up 0.05%, the Nasdaq gained 0.4%, and the Dow dropped 0.2%, reflecting mixed investor sentiment amid the global uncertainty.
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