Asian Markets Were Mixed on South Korea's Market Turmoil and the US Comforting Signal

 

Asian stock markets displayed mixed performance on Thursday, Dec. 5, following an overnight rally in the US market and today's decline in South Korea's market. Because of the surge in tech shares and the positive hints from the Fed Chair Jerome Powell three major indexes in the US market closed at record highs. The sentiment in Asia was relieved by Powell's reservations about a December rate cut revealed in his speech. However, South Korea's market turmoil driven by its political unrest pulled up caution in Asia.

 

South Korea's KOSPI index fell 0.90%, due to the continued market turmoil caused by President Yoon’s short-lived martial law. The government announced a $28.35 million fund to stabilize the market. South Korean government prepared to respond to market underperformance with contingency measures including bond purchases and expanded share buybacks.

 

 

Elsewhere in the Asia Pacific region, Japan's Nikkei 225 rose 0.30%, supported by strong service activity growth in November. Australia’s S&P/ASX 200 gained 0.15% on a rallying trade balance.

 

 

China’s markets were mixed, with the Shanghai Composite Index closing slightly higher at 0.12% and Hong Kong’s Hang Seng index dropping 0.92% as the possibility of a US-China trade battle and the falling foreign inflow in Chinese stocks worried investors.

 

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