People gather outside the National Assembly after South Korean President Yoon Seok-yeol declares martial law in Seoul, South Korea, December 4, 2024.
Kim Soo-hyun | Reuters
South Korean markets opened lower on Wednesday after a day of political turmoil in South Korea, where President Yun Seok-Yeol declared martial law and lifted it within hours.
The country’s Kospi index fell 1.9% and the Kosdaq fell 2.1%, with trading volatile amid news that the country may pump in money to shore up the market. Ta.
After the emergency board meeting, the Bank of Korea announced that it would deploy measures to increase short-term liquidity and stabilize the foreign exchange market as necessary. Special financing will also be made available to inject capital into the market, it added.
Earlier, Yonhap News reported that the country’s top financial regulator was ready to inject 10 trillion won ($7.07 billion) into the stock market stabilization fund at any time to calm market sentiment.
Meanwhile, South Korea’s foreign exchange authorities are suspected of selling U.S. dollars in the onshore market early Wednesday to stem the fall in the South Korean won, two dealers told Reuters.
According to local media reports, the country’s opposition Democratic Party announced that if Yoon does not immediately resign, it will begin impeachment proceedings to remove him from office. Yoon’s chief of staff and chief of staff are reported to have collectively submitted their resignations.
Other Asia-Pacific markets fell as investors digested the events in South Korea.
Japan’s Nikkei Stock Average fell 0.4%, and the TOPIX also fell 0.4%.
hong kong hansen index It was trading 0.1% higher. Mainland China’s CSI300 fell 0.2%.
Investors also assessed Australia’s GDP data, which showed economic growth was slower than expected in the third quarter as rising borrowing costs and persistent inflation continued to weigh on the country. Shown.
Australia’s S&P/ASX 200 traded 0.4% lower.
In the United States, Korean stocks fluctuated wildly amid a political upheaval that shook the world’s 13th largest economy overnight.
The iShares MSCI Korea ETF (EWY), which tracks more than 90 large and mid-sized Korean companies, fell as much as 7% to a 52-week low.
Later in the day, the ETF cut losses to close 1.6% lower on Tuesday after Mr. Yin said he would lift the state of emergency following a parliamentary vote to overturn martial law. Ta.
Meanwhile, the S&P 500 rose 0.05% and the Nasdaq Composite rose 0.4%. Both indexes closed at all-time highs. The Dow Jones Industrial Average (30 stocks) lagged, falling nearly 0.2%.
—CNBC’s Yun Li and Hakyung Kim contributed to this report.
