On Wednesday morning (4 December, 9:26 AM, GMT+7, Bangkok time), major indices in Asia Pacific exhibited a downward trend following a day of political turmoil, as South Korea’s President, Yoon Suk Yeol, implemented and subsequently revoked a martial law decree in a matter of hours.
The Kospi index experienced a slump during the morning session, while the Kosdaq saw a 2.1% drop, with losses being partially offset subsequent to reports suggesting the potential injection of funds by the country to stabilize its markets.
As per reports from the Yonhap News Agency, the country’s financial regulatory body expressed readiness to utilize a stock market stabilization fund worth 10 trillion won ($7.07 billion) promptly to soothe market sentiments.
Reports suggest that South Korea’s foreign exchange authorities were seen selling U.S. dollars in efforts to stabilize the Korean won, while the Bank of Korea held an emergency meeting due to financial concerns. The opposition Democratic Party has threatened impeachment proceedings against President Yoon if he does not resign immediately, with reports of his chief of staff and senior secretaries offering mass resignations.
Apart from the said development, investors also analyzed Australia’s GDP data, revealing a slower-than-expected economic growth in the third quarter due to persistent high borrowing costs and sticky inflation, impacting the country’s performance.
Japan’s NIKKEI slid by 0.25% to 39,151.91. South Korea’s KOSPI plummeted by 2.03% to 2,449.23, and Australia’s ASX 200 fell by 0.58% to 8,445.6.
As for stocks in China, Shanghai’s SSEC dipped by 0.25% to 3,370.52. Hong Kong’s HSI declined by 0.36% to 19,674.49, and Shenzhen’s SZI dropped by 0.52% to 10,658.01.
Meanwhile, the US stock markets were mixed on Tuesday as NASDAQ added 0.4% to 19,480.91. S&P 500 increased by 0.05% to 6,049.88, while the Dow Jones Industrial Average (DJIA) edged down by 0.17% to 44,705.53. VIX contracted by 0.3% to 13.3.
As for commodities, oil prices settled higher on Tuesday, with traders focusing on the forthcoming OPEC+ meeting’s outcome on Thursday. According to CNBC citing sources familiar with the matter as reported by Reuters, OPEC+ has indicated that an extension of the current oil output cuts until the end of the first quarter is probable to bolster the oil market further. Brent futures surged $1.79 or 2.49% to $73.62 a barrel, and the West Texas Intermediate (WTI) gained $1.84 or 2.7% to $69.94 per barrel.
This morning, Brent futures slid 1 cent or 0.01% to $73.61 a barrel, and the WTI decreased 1 cent or 0.01% to $69.93 per barrel.
Meanwhile, gold futures lost 0.03% to $2,667 per Troy ounce.
