Asian stocks waver due to South Korean political turmoil and global uncertainties

From Investing.com: 2024-12-04 01:52:54

Asian equities faced challenges due to political turmoil in South Korea and France, with martial law imposed and lifted in Korea, and a no-confidence vote in France. South Korea’s economy is affected, with the won remaining close to a two-year low against the dollar. Markets are also anxious about uncertainties globally.

South Korea’s President lifted martial law after a standoff with parliament, but concerns about the impact on the economy and sovereign credit rating remain. The finance ministry stands ready to inject liquidity if needed. The jolt in East Asian markets adds to existing worries, including political unrest in France and the weakening euro.

Investors await clues on the Federal Reserve’s policy direction, with U.S. job openings increasing in October and layoffs dropping. A 72% chance of a 25 basis point cut this month is anticipated, with further cuts expected next year. Fed policymakers believe inflation is approaching their 2% target, supporting potential rate cuts.

The U.S. dollar remains steady against major currencies, while the Australian dollar weakens on soft economic data. Oil prices edge higher amid geopolitical tensions, with Israel threatening to attack Lebanon if a truce fails and OPEC+ expected to extend supply cuts. Markets remain cautious amidst global uncertainties.



Read more at Investing.com: Asian stocks waver, rattled by South Korean political tremors By Reuters