Investing.com– Most Asian stocks rose on Thursday tracking a third consecutive record-high close on Wall Street amid a tech share rally, while South Korean equities extended declines on fears of a potential political crisis.
All three major U.S. stock indexes ended at record highs overnight as technology shares rallied after strong earnings from Salesforce (NYSE:CRM). U.S. futures were little changed on Thursday.
Regional investors also drew some comfort from U.S. Federal Reserve Chair Jerome Powell’s address at a New York Times event. Powell flagged strength in the U.S. economy and did not downplay expectations for a December rate cut, although he did flag a more cautious approach to future easing.
South Korean shares extend losses after martial law fiasco
South Korea’s KOSPI index fell 0.3%, after closing 1.3% lower a day earlier when President Yoon Suk-Yeol tried to impose martial law.
President Yoon declared martial law on Tuesday in an effort to counter “anti-state forces” among his political opponents, but revoked the measure within hours after he faced immediate backlash, including parliamentary rejection and public protests. This led to demands for Yoon’s impeachment by the country’s legislators.
South Korea’s Finance Ministry on Thursday announced a 40 trillion won ($28.35 billion) market stabilization fund after Yoon’s declaration disrupted markets. The Bank of Korea may buy bonds and expand repo operations, with authorities ready to act under contingency plans if necessary.
Other data showed that South Korea’s economy grew just by 0.1% in the third quarter, unchanged from advance estimates issued earlier.
