French President Emmanuel Macron says he will appoint a new prime minister after Michel Barnier steps down, rejects calls for his resignation AFP
Asian stocks were mostly lower on Friday after a turbulent week, with South Korean stocks and the won still under pressure as the country’s president faces impeachment and his job hangs in the balance.
Over the past few days, with Seoul in crisis, the French government falling, and Bitcoin surging to an all-time high above $100,000, traders are looking for a little stability.
They are also preparing for the release of U.S jobs data while keeping a close eye on Donald Trump’s cabinet formation, with signs so far that he will take a tough stance on trade, fueling fears of a renewed standoff with China.
As South Korean lawmakers prepared for an impeachment vote on Saturday after President Yoon Seok-yeol imposed a dramatic brief martial law late Tuesday, Seoul stocks fell more than one percent and the won weakened to around 1,423 to the dollar.
While analysts say the economic impact of the crisis is likely to be limited, the political storm continues.
On Friday, the leader of Yoon’s ruling People Power Party called on him to step down over the incident, warning that he posed a great danger to the country.
Han’s comments effectively guaranteed enough votes to impeach the president. Just a day earlier, he said he would block impeachment and another party leader insisted that all 108 members of the People’s Party would support the president.
“In light of the emerging facts, I believe that the prompt suspension of President Yun Seok-yeol is necessary to protect the Republic of Korea and its people,” the two Koreas said.
The decline in Seoul shares was in line with a sell-off across much of Asia after all three major Wall Street indexes retreated from record highs.
U.S investors are awaiting key U.S jobs data due on Friday that could influence the Federal Reserve’s decision on whether to cut interest rates this month.
Tokyo, Sydney, Singapore, Wellington, Manila and Taipei all fell.
However, stocks in Hong Kong and Shanghai rose as investors hoped for some new stimulus when top Chinese leaders, including President Xi Jinping, meet next week to discuss economic policy.
The gathering came after recent data offered some signs of optimism that the painful growth slowdown that has plagued China for nearly two years may be coming to an end.
Bitcoin hovered below $98,000 in Asian trading after surging to an all-time high of $103,800 the day before, boosted by news that Trump had picked cryptocurrency supporter Paul Atkins to take over as chairman of the nation’s markets regulator.
The tycoon, who has often vowed to deregulate the cryptocurrency sector during his campaign, welcomed the milestone.
“Congratulations Bitcoiners!!! $100K!!! You’re welcome!!! Together, we’re making America great again!” Trump said on Truth Social, his own crypto platform that launched in September.
The events in Paris were closely watched after a historic no-confidence vote toppled the government of French Prime Minister Michel Barnier over a contentious budget dispute.
President Emmanuel Macron vowed to appoint a new prime minister in the coming days to prevent France from sliding into deeper political turmoil and rejected growing pressure from the opposition to resign.
However, far-right leader Marine Le Pen, Barnier’s main rival, gave some hope that the crisis could be resolved when she said in a television interview that her party “will let them work” once a new prime minister is appointed and would not call for Macron’s resignation.
The euro fell slightly but remained well above Thursday’s levels around $1.0500
Tokyo – Nikkei 225: Down 0.9% to 39,042.59 (close)
Hong Kong – Hang Seng: Up 0.2% to 19,602.27
Shanghai Composite Index: Up 0.1% to 3,370.68 points
EUR/USD: Down to $1.0572 from $1.0591 on Thursday
GBP/USD: Down from $1.2760 to $1.2749
USD/JPY: Up from 150.09 yen to 150.11 yen
EUR/GBP: Down to 82.93 pence from 82.97 pence
West Texas Intermediate crude: Down 0.1% to $68.21 a barrel
Brent North Sea crude: Down 0.2% to $71.95 a barrel
New York – Dow Jones: Down 0.6% to 44,765.71 (close)
London – FTSE 100: Up 0.2% at 8,349.38 (close)