Political Turmoil Shakes Asian and European Markets

Asian markets faced volatility as South Korea imposed and then lifted martial law, impacting the won and KOSPI index. Meanwhile, French political uncertainty put the euro under pressure, as investors awaited a no-confidence vote. The situation added to global market concerns amid upcoming Federal Reserve decisions.

Asian equities faced turbulence on Wednesday, responding to political disruptions in South Korea, where martial law was briefly imposed and lifted, creating instability. The South Korean won remained near a two-year low against the dollar, and the KOSPI index fell 1.3%, marking a significant decline this year.

Meanwhile, broader Asian markets remained stable, with the MSCI index outside Japan showing little change. In South Korea, President Yoon Suk Yeol rescinded his martial law declaration amidst parliamentary pushback, further complicating the political and economic landscape.

This comes as the euro faced pressure due to potential political shakeups in France, with a no-confidence vote anticipated. Investors remain on edge globally, looking to Federal Reserve cues and geopolitical developments to guide future market movements.

(With inputs from agencies.)