HONG KONG (AFP) – Asian markets mostly fell Friday at the end of a volatile week, with South Korean stocks and the won still under pressure with the president’s job hanging by a thread as he faces impeachment.
Traders were looking for a little stability after the past few days that saw Seoul plunged into crisis, France’s government fall and bitcoin surge to a historic high above USD100,000.
They are also gearing up for the release of US jobs data, while keeping tabs on Donald Trump as he puts together his cabinet, with signs so far suggesting he will take a hawkish tone on trade, fuelling worries about another standoff with China.
Shares in Seoul sank more than one percent and the won weakened to about 1,423 per dollar as lawmakers prepare to hold an impeachment vote Saturday after President Yoon Suk Yeol’s dramatic, short-lived martial law on Tuesday night.
While analysts said the economic fallout from the crisis would likely be limited, the political storm is ongoing.
On Friday the head of Yoon’s ruling People Power Party demanded he stand down over the incident, warning he posed a great danger to the country.
Han Dong-hoon’s remarks — virtually guaranteeing enough votes to impeach — come just a day after he said he would block the impeachment, and another party leader insisted all 108 PP members would back the president.
“Considering the newly emerging facts, I believe that a swift suspension of President Yoon Suk Yeol’s duties is necessary to safeguard the Republic of Korea and its people,” Han said.
The losses in Seoul were in line with a sell-off across most of Asia, which came after all three main indexes on Wall Street retreated from record highs Thursday.
US investors were biding their time ahead of key US jobs data Friday that could play a role in the Federal Reserve’s decision-making on whether or not to cut interest rate this month.
Tokyo, Sydney, Singapore, Wellington, Manila, Taipei all fell.
Hong Kong and Shanghai rose, however, with investors hoping for some fresh stimulus when top Chinese leaders including President Xi Jinping meet to discuss economic policy next week.
That gathering follows recent data that gave a glimmer of optimism that the painful growth slowdown that has wracked the country for almost two years could be coming to an end.