Asian Shares Slip Amid South Korea Turmoil And U.S. Rate Cut Uncertainty

Asian stocks fell as they were weighed down by political unrest in South Korea and investor anticipation of US payroll data, which could influence the Federal Reserve’s rate decision later this month, Reuters reported.

South Korea's market turbulence follows South Korean President Yoon Suk Yeol’s declaration of martial law earlier this week. I Photo: 윤석열 Facebook

The MSCI Asia-Pacific index, excluding Japan, dropped 0.3%, with South Korea’s KOSPI index falling 1.7%.

The Korean won also slid 0.8% to 1,425.42 per dollar, nearing its recent low of 1,443.4. The market turbulence follows South Korean President Yoon Suk Yeol’s declaration of martial law earlier this week.

Reports of another potential martial law declaration, according to Yonhap News Agency, prompted South Korea’s main opposition Democratic Party to place its lawmakers on high alert.

Elsewhere in Asia, markets showed mixed performances. China's blue-chip stocks rose 0.2%, while Hong Kong’s Hang Seng index gained 0.4%.

Japan’s Nikkei slipped 0.6% but remained up 2.5% for the week, buoyed by robust wage growth data. Japan’s local wages grew in October at the fastest rate in 32 years, yet market sentiment suggests the Bank of Japan is unlikely to raise interest rates this month.