Market Analysis

South Korean markets plunge after President Yoon Suk-Yeol’s short-lived martial law declaration sparks political crisis. KOSPI slumped over 2% as opposition parties prepare impeachment bill. Won stabilizes after hitting two-year low, with suspected intervention from authorities.

Anna
December 4, 2024

Asian markets broadly lower on South Korean political turmoil. Nikkei down 0.4%, CSI 300 fell 0.3%. Thailand’s SET bucks trend, up 1.3% on rate cut hopes. Australian stocks drop 0.5% after weak GDP data.
Australian economy grew less than expected in Q3 at 0.8% YoY vs 1.1% forecast. AUD/USD drops over 1% to four-month low as markets price in earlier RBA rate cuts.
ANZ and Westpac expect RBA to begin rate cuts from May 2025, with Capital Economics forecasting easing cycle in Q2.
Chinese services PMI shows slowing growth in November, falling to 51.5 from 52.0. Chinese chipmaking stocks surge after government recommends against buying US-made chips.
Thailand CPI rises 0.95% YoY in November, below 1.1% forecast and central bank’s target range. Finance Minister signals potential rate cut amid low inflation.
Indian services PMI remains strong at 58.4 in November despite decade-high price increases. Record hiring pace noted with robust business sentiment.
Markets await Fed Chair Powell’s speech for rate outlook cues. US Dollar Index edges up 0.1% for third straight session.
Gold inches higher to $2,646 on South Korea tensions and Israel-Hezbollah conflict concerns. Copper futures down 0.3% to $9,096 per ton.
Rare earth stocks rally after China bans export of gallium and germanium compounds to US. Australia’s Lynas jumps 6%, Iluka Resources gains 4%.
South Korea’s finance ministry pledges “unlimited” liquidity support to stabilize markets. Bank of Korea announces special repo operations and looser collateral policies.
Key events ahead: Fed Chair Powell speech, PMI data for France, Germany, UK and eurozone, French no-confidence vote.

South Korean markets plunge after President Yoon Suk-Yeol’s short-lived martial law declaration sparks political crisis. KOSPI slumped over 2% as opposition parties prepare impeachment bill. Won stabilizes after hitting two-year low, with suspected intervention from authorities.

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