On December 4, 2024, in Seoul, South Korea, people gathered outside the National Assembly after South Korean President Yoon Seok-yeol declared martial law.
Kim Soo Hyun | Reuters
South Korean stocks opened lower on Wednesday after a day of political turmoil in the country that saw President Yoon Suk Yeol impose and then lift martial law within hours.
The country’s Kospi index fell 1.6% and the Kosdaq fell 1.9%, recouping some losses after reports that the country may deploy funds to support the market.
According to Yonhap News Agency, the country’s financial regulator is ready to deploy a 10 trillion won (US$7.07 billion) stock market stabilization fund at any time to calm market sentiment.
The Bank of Korea’s Monetary Policy Committee held a special board meeting at around 9 a.m. local time due to concerns about financial instability.
The country’s opposition Democratic Party said it would launch impeachment proceedings to remove Yin if he did not step down immediately, according to local reports. According to reports, Yin’s chief of staff and senior secretaries have collectively tendered their resignations.
Other Asia-Pacific markets opened mixed as investors digested events in South Korea.
Japanese Nikkei 225 Index Shares fell 0.1%, while the Topix fell 0.2%.
Hongkong Hang Seng Index Index futures were at 19,785 points, higher than the Hang Seng Index’s last closing point of 19,746.32 points.
Investors also assessed Australia’s real GDP growth rate in the third quarter, which increased by 0.8% year-on-year. data From the Australian Bureau of Statistics.
The figure was lower than the 1.1% growth forecast by economists polled by Reuters and represented the eighth consecutive quarter of no GDP growth.
Australian S&P/ASX 200 Index The trading price fell by 0.45%.
Overnight U.S. stocks, Korean stocks swing wildly Amid political turmoil rocking the world’s 13th largest economy.
this iShares MSCI Korea ETF (EWY), The index tracking more than 90 large and medium-sized companies in South Korea fell 7%, hitting a 52-week low.
Later in the day, the ETF pared its losses, closing down 1.6% on Tuesday, after Yun said he would lift the emergency declaration after a National Assembly vote to overturn it. his martial law.
Meanwhile, the S&P 500 edged up 0.05% and the Nasdaq rose 0.4%. Both indexes closed at record highs. Thirty stocks in the Dow lagged, falling nearly 0.2%.
—CNBC’s Yun Li and Hakyung Kim contributed to this report.
