Following a day of political unrest in which President Yoon Suk Yeol declared martial law and then lifted it within hours, South Korean markets started lower on Wednesday.
As protesters and opposition parties stepped up their calls for Yoon’s resignation, the Kosdaq sank 2.38% and the nation’s Kospi index fell 2%.
Reuters reports that a group of parliamentarians from opposition parties will present a bill to remove Yoon from office on Wednesday. If it is introduced, it should be put to a vote within 72 hours. According to the news, Yoon’s senior secretaries and chief of staff have all contributed to stepping down.
Following an emergency board meeting, the Bank of Korea announced it would increase short-term liquidity and other necessary measures to stabilize the FX market amid concerns about financial instability. It further stated that it will make available any special loans needed to stimulate the market.
In order to soothe market mood, Yonhap News Agency had earlier stated that the nation’s top financial regulator was prepared to invest 10 trillion won ($7.07 billion) in a stock market stability fund at any moment.
In the meantime, two dealers told Reuters that they believe South Korea’s foreign exchange officials sold US dollars on the domestic market early on Wednesday in an attempt to curb losses in the Korean won.
As investors processed what had happened in South Korea, other Asia-Pacific markets were trading lower. The Topix fell 0.4%, and Japan’s Nikkei 225 fell 0.4%.
The Hang Seng index for Hong Kong was up 0.1%. The CSI 300 in Mainland China fell 0.2%.
Investors also evaluated Australia’s GDP figures, which revealed that the country’s economic growth was weaker than anticipated in the third quarter due to high borrowing costs and persistently high sticky inflation.
The S&P/ASX 200 in Australia was down 0.4%.
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