French President Emmanuel Macron said he will appoint a new prime minister after the fall of Michel Barnier and rejected calls to resign.
Photo: Ludovic MARIN / AFP
Source: 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 $100,000.
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.
Read also
Bitcoin hits $100,000 for first time as traders cheer Trump pick
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.
Read also
South Korea stocks drop, won stable as Asian markets fluctuate
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.
Bitcoin surge abates
Bitcoin was hovering just below $98,000 in Asian business, having blasted to the historic peak of $103,800 the day before, helped by news that Trump had picked crypto proponent Paul Atkins to take over as chair of the nation’s markets regulator.
The tycoon, who often remarked on his election campaign that he would deregulate the crypto sector, welcomed the milestone.
“CONGRATULATIONS BITCOINERS!!! $100,000!!! YOU’RE WELCOME!!! Together, we will Make America Great Again!” said Trump, who in September launched his own crypto platform, on Truth Social.
Read also
Seoul stocks sink amid S. Korea drama as Asian markets struggle
Events in Paris are being closely watched after a historic no-confidence vote that ousted the government of French Prime Minister Michel Barnier, following a battle over a controversial budget.
President Emmanuel Macron vowed to name a new prime minister in the coming days to prevent France from sliding deeper into political turmoil, rejecting growing pressure from the opposition to resign.
However, there was some hope that the crisis could be settled after far-right leader Marine Le Pen — a key opponent of Barnier — said in a television interview that once a new premier was appointed, her party “would let them work” and did not call on Macron to resign.
The euro edged down slightly but was much stronger than the levels around $1.0500 seen Thursday
Key figures around 0230 GMT
Tokyo – Nikkei 225: DOWN 0.9 percent at 39,042.59 (break)
Hong Kong – Hang Seng Index: UP 0.2 percent at 19,602.27
Read also
Defying headwinds, Germany stocks hit milestone
Shanghai – Composite: UP 0.1 percent at 3,370.68
Euro/dollar: DOWN at $1.0572 from $1.0591 on Thursday
Pound/dollar: DOWN at $1.2749 from $1.2760
Dollar/yen: UP at 150.11 yen from 150.09 yen
Euro/pound: DOWN at 82.93 from 82.97 pence
West Texas Intermediate: DOWN 0.1 percent at $68.21 per barrel
Brent North Sea Crude: DOWN 0.2 percent at $71.95 per barrel
New York – Dow: DOWN 0.6 percent at 44,765.71 (close)
London – FTSE 100: UP 0.2 percent at 8,349.38 (close)
Source: AFP