Geopolitical tensions weigh on Asian markets
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Asian stock markets experienced a mostly negative trading session, impacted by rising geopolitical tensions. Political instability in South Korea significantly influenced local and regional markets, following President Yoon Suk Yeol’s brief declaration of martial law, which was later retracted, increasing uncertainty.
Mixed Performance Across Major Asian Indices
The Tokyo Stock Exchange closed virtually unchanged, with a modest gain of 0.08%. In contrast, Shenzhen dropped sharply by 1.29%, impacted by a disappointing PMI services report that raised concerns over China’s economic outlook.
Hong Kong saw a slight decline (-0.14%), while Seoul suffered a significant drop of 1.29%, as investors awaited developments regarding domestic political tensions, particularly calls for the president’s resignation. The Bombay Stock Exchange closed with a moderate gain (+0.17%), while Sydney saw a slight loss of 0.3%.
Currency Market Movements
On the currency front, the euro gained against the Japanese yen, rising by 0.42%. The euro-yuan exchange rate remained virtually stable, with a slight decline of 0.09%. The Hong Kong dollar showed a modest positive change (+0.13%) against the euro.
Bond Yields
In the bond market, the yield on Japan’s 10-year government bond closed at 1.06%, while China’s 10-year government bond yield was higher at 1.97%, indicating greater investor confidence in Chinese bonds compared to Japanese ones.
In conclusion, today’s session in Asian markets was marked by a mix of political uncertainties and mixed economic data, with investors waiting for significant developments in the region’s future outlook.
Mixed Performance Across Major Asian Indices
The Tokyo Stock Exchange closed virtually unchanged, with a modest gain of 0.08%. In contrast, Shenzhen dropped sharply by 1.29%, impacted by a disappointing PMI services report that raised concerns over China’s economic outlook.
Hong Kong saw a slight decline (-0.14%), while Seoul suffered a significant drop of 1.29%, as investors awaited developments regarding domestic political tensions, particularly calls for the president’s resignation. The Bombay Stock Exchange closed with a moderate gain (+0.17%), while Sydney saw a slight loss of 0.3%.
Currency Market Movements
On the currency front, the euro gained against the Japanese yen, rising by 0.42%. The euro-yuan exchange rate remained virtually stable, with a slight decline of 0.09%. The Hong Kong dollar showed a modest positive change (+0.13%) against the euro.
Bond Yields
In the bond market, the yield on Japan’s 10-year government bond closed at 1.06%, while China’s 10-year government bond yield was higher at 1.97%, indicating greater investor confidence in Chinese bonds compared to Japanese ones.
In conclusion, today’s session in Asian markets was marked by a mix of political uncertainties and mixed economic data, with investors waiting for significant developments in the region’s future outlook.