Asia report: Markets mixed as Korean political fallout continues

(Sharecast News) - Asia-Pacific markets ended Thursday with a mixed performance as investors digested global political uncertainties and monitored local developments. Political unrest in South Korea and France contributed to a cautious tone, even as Wall Street recorded new highs overnight.

"Asian markets displayed mixed results on Thursday after Wall Street reached record highs," said Patrick Munnelly at TickMill.

"A disappointing report on US services data heightened investor optimism about the possibility of an interest rate cut by the Federal Reserve.

"Overnight, the S&P 500, Nasdaq, and Dow all set new record levels."

Munnelly noted that the price of bitcoin surged to six figures, crossing the $100,000 threshold - a milestone that "appeared increasingly likely" following Donald Trump's election as the next US president, given his crypto-friendly campaign platform.

"While reaching this figure is symbolic, it highlights the growing prominence of cryptocurrencies in today's financial markets.

"Some commentators jokingly speculated that persuasive conversations from children and grandchildren during Thanksgiving may have contributed to pushing bitcoin past this milestone, particularly as investors had shown hesitation at that level in the preceding weeks.

"However, the true driving force behind this momentum stemmed from significant investments by large investors and the introduction of new bitcoin ETFs."

Markets mixed despite Wall Street's fresh records

Japanese equities edged higher, with the Nikkei 225 gaining 0.3% to close at 39,395.60, while the broader Topix index rose 0.06% to 2,742.24.

Gains on Tokyo's benchmark were led by Casio Computer, up 4.6%; Keio Corporation, which added 3.86%; and Ebara, which was 3.42% higher.

Mainland Chinese markets also saw modest gains, with the Shanghai Composite up 0.12% to 3,368.86 and the Shenzhen Component climbing 0.29% to 10,634.49.

Beijing Worldia Diamond Tools surged 20.01% in Shanghai, while Hua Yuan Property and Saurer Intelligent Technology both gained over 10%.

In contrast, Hong Kong's Hang Seng Index fell 0.92% to 19,560.44, weighed down by losses of 3.63% in Meituan, 3.31% for Trip.com Group, and 3.28% in Alibaba Health Information Technology.

South Korea's Kospi 100 dropped 0.83% to 2,446.60 amid political tensions following a motion to impeach president Yoon Suk Yeol.

The motion came after Yoon unexpectedly declared martial law late on Tuesday, sending the military to arrest opposition leaders, before rescinding the declaration several hours later.

NCsoft Corporation plunged 14.35%, KakaoPay fell 13.2%, and KB Financial Group lost 10.06%.

Australia's S&P/ASX 200 rose 0.15% to 8,474.90, supported by gains in the resource sector.

Spartan Resources jumped 10.56%, while Genesis Minerals and Ramelius Resources gained 9.13% and 8.53%, respectively.

New Zealand's S&P/NZX 50 remained almost flat, inching up 0.002% to 12,896.95.

Sky Network Television led local gains, up 6.88%, followed by Restaurant Brands New Zealand and Freightways.

In currency markets, the dollar was last down 0.18% on the yen, trading at JPY 150.32, as it weakened 0.15% against the Aussie to AUD 1.5528, and retreated 0.21% against the Kiwi, changing hands at NZD 1.7056.

On the oil front, Brent crude futures were last up 0.26% on ICE at $72.50 per barrel, while the NYMEX quote for West Texas Intermediate increased 0.34% to $68.77.

South Korean economy grows modestly in third quarter

In economic news, South Korea's economy grew modestly in the third quarter, with revised data confirming a 0.1% expansion quarter-on-quarter and a 1.5% increase year-on-year.

The figures remained unchanged from earlier estimates.

In Japan, Bank of Japan board member Toyoaki Nakamura expressed doubts about meeting the central bank's 2% inflation target by the 2026 financial year.

Speaking on Thursday, Nakamura highlighted concerns over the sustainability of wage growth, a key factor in achieving lasting inflation.

He also warned that Japan's economic growth might fall short of the BoJ's forecast, which projected a 1% average annual expansion and a headline inflation rate of 1.8% to 2% for 2026.

Nakamura, known for his dovish stance, had consistently opposed tightening measures.

He voted against rate hikes in July and resisted reducing Japanese government bond purchases earlier in the year.

Reporting by Josh White for Sharecast.com.