Newscasts - Asia Markets Briefing: Korean Won trims losses after wild 24 hours

KDDI

04/12/2024 09:06

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Source: 'Reuters - Business videos'

Description: South Korean stocks and the Won both recovered early losses on
Wednesday, after the South Korean finance ministry said its ready to pump
"unlimited" liquidity into the country's financial markets.
Short Link: https://refini.tv/49nrTdD

Video Transcript:

Investors in career catch their breath after a wild 24 hours. I'm Thomas
Warner with your Asia Markets Briefing. The KOSPI and the Won both trimmed
losses on Wednesday after the South Korean finance ministry said that it's
ready to pump, “unlimited liquidity into the country's markets.”
Korea's currency initially fell to a more than two year low, after President
Yoon Suk Yeol issued a shock declaration of martial law. It's now down less
than 1% against the Dollar. Confirmation that the authorities will be active
in propping up Asia's fourth largest economy. And the lifting of that martial
law declaration mean that for now, peace is restored. The KOSPI closed only
around a percent and a half lower in the end, well within recent levels. The
wider regional index was broadly flat, with trading across Asia subdued by
those scenes in Seoul. Japan’s Nikkei clocked up its third straight day
of gains, albeit narrowly. But stocks in China dipped after a week services
PMI, as well as growing tension over the US trade relations. Four of China's
top industry associations have taken the unusual step of issuing a joint
statement this week. They say the Chinese companies should be wary of buying
US chips as they are, “no longer safe” and they should buy locally
instead. The world's top two economies have continued to trade barbs and fresh
trade restrictions over the last few days. China on Tuesday banned exports to
the US of certain critical minerals that are used to make military hardware.
Beijing has also reacted badly to the president of Taiwan's visit to Hawaii
last weekend. Security sources have told Reuters that China could stage new
war game around Taiwan as early as this weekend in response to the trip.
Taiwan's top China policymaker says that Chinese military threats will only
drive the two sides further apart. Let's head now to Japan, where the latest.
au Jibun Bank PMI shows that service activity swung back to growth in
November. The reading rose to 50.5 in November from 49.7 in October. That's
according to the survey compiled by S&P. It suggests that improving demand for
services is giving a boost to new businesses. The data comes ahead of the Bank
of Japan's policy meeting on December 18 and 19, the outcome of which remains
on a knife edge. The December cut from the Fed is also up in the air.

So right now, I would say it's a coin flip as whether the Fed cuts one more
time in 2024. I would lean towards I don't think it's necessary, and just
because I think the economy is showing too much shrink for there to be a need
to cut right now.

Just time now for a look ahead to Thursday, when we're expecting some fresh
household spending figures from Japan. We're also due a fresh CPI print from
the Philippines. November's consumer prices are seen gaining 2.5% on the year,
up from 2.3%. And that's it from your Asia Markets Briefing