Market

Asia-Pacific Markets Dip as South Korea's Political Crisis and US Economic Data Stir Concerns

Asia-Pacific Markets React to Political and Economic Uncertainties

As the Asia-Pacific region woke up to a new trading day, most stock indices were seen trading lower. The arrest of South Korean President Yoon Suk-yeol on allegations of imposing martial law in December has injected a dose of uncertainty into the markets. Investors are closely monitoring the situation, wary of its potential impact on regional stability and economic policies.

US Economic Indicators Add to the Gloom

Adding to the market's concerns, the latest US Producer Price Index data, which rose by a modest 0.2% in December, fell short of expectations. This weaker-than-anticipated increase suggests softer inflationary pressures, leaving traders to ponder the Federal Reserve's next moves in its ongoing battle against inflation.

Market Performance Across the Region

Japan's Nikkei 225 saw a slight decline of 0.19%, while in mainland China, the Shanghai Composite and Shenzhen Composite dropped by 0.43% and 0.81%, respectively. Hong Kong's Hang Seng and South Korea's Kospi remained largely unchanged. Down under, Australia's S&P/ASX 200 closed the day 0.22% lower. Meanwhile, the dollar weakened against the yen, trading 0.34% lower.