Asia stocks fall as South Korea's political crisis deepens, dragging down market sentiment

From Investing.com: 2024-12-08 22:02:31

Asian equities declined on Monday, with South Korean shares plunging over 2% due to deepening political unrest. Concerns over Middle East tensions also weighed on investor sentiment, as rebel forces ousted Syrian President al-Assad. Economic data from China and Japan were also being closely monitored.

South Korea’s index hit its lowest level since November 2023, as President Yoon faced a criminal investigation for attempting to impose martial law. Political instability in the country has kept investors on edge, with fears of potential ripple effects across Asia.

Japan’s GDP data showed modest growth in the third quarter, but doubts remain on the Bank of Japan’s ability to raise rates. Chinese CPI contracted more than expected in November, signaling ongoing challenges for the country’s factories amidst weak domestic demand.

Investors are eyeing China’s Central Economic Work Conference for clues on potential stimulus measures. U.S. inflation data, due on Wednesday, will be closely watched to gauge the Federal Reserve’s interest rate outlook. US stock futures were flat in Asian trade, while global markets remained cautious.



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