- Asian Stocks Fall as Political Chaos Rattles Korea: Markets Wrap
Stocks in Asia declined after South Korea’s political turmoil triggered by a brief imposition of martial law put
investors on edge. The benchmark Kospi Index fell as much as 2.3% on Wednesday after South Korea-related
assets all dropped overnight. The MSCI Asia Pacific Index was down 0.4%, with shares lower in Australia,
Japan and mainland China. The won advanced after dropping overnight in offshore trading. South Korean
President Yoon Suk Yeol’s sudden declaration of martial law late Tuesday, which was later revoked, looks set
to thrust the nation into a period of political unrest, with the opposition now pushing for his impeachment.
The uncertainties surrounding a major economy and pillar of global trade increased caution among investors
in Asia, at a time when Donald Trump’s imminent return and China’s economic woes have already hurt
sentiment. - S&P 500 ticks higher for another record close on Tuesday
The S&P 500 inched higher Tuesday, eking out another record close. The broad market index added 0.05%,
ending at 6,049.88. The Nasdaq Composite advanced 0.40% to close at 19,480.91, hitting a new intraday
record as Apple rose to a fresh 52-week high. Both the S&P 500 and the tech-heavy Nasdaq posted new
closing records. The Dow Jones Industrial Average underperformed, losing 76.47 points, or 0.17%, to settle at
44,705.53. - Oil steady as markets weigh higher U.S. stockpiles, OPEC+ supply plans
Oil prices were little changed in early Asia trade on Wednesday as market participants weighed higher U.S.
crude oil and fuel inventories as well as the likelihood of OPEC+ extending supply cuts. Brent crude
futures fell 2 cents, or 0.03%, to $73.60 a barrel by 0145 GMT, while U.S. West Texas Intermediate crude
futures eased 3 cents, or 0.04%, to $69.91. On Tuesday, Brent posted its biggest gain in two weeks, rising
2.5%. U.S. crude oil inventory rose 1.2 million barrels last week, market sources said, citing data from the
American Petroleum Institute. Gasoline inventory also rose, by 4.6 million barrels, even though the week
included Thanksgiving when demand typically rises as families travel by car for holiday get-togethers. - Gold steady; all eyes on U.S. jobs data, Fed Chair’s speech
Gold prices steadied on Wednesday as markets awaited U.S. jobs data and comments from Federal
Reserve Chair Jerome Powell for further insights into the U.S. interest rate cut trajectory. Spot gold held its
ground at $2,644.42 per ounce, as of 0203 GMT. U.S. gold futures eased 0.1% to $2,666.40. The U.S.
ADP employment report is due at 1315 GMT, ahead of the U.S. payrolls report on Friday. Powell is scheduled
to speak later in the day in what is expected to be his last public remarks before the Fed’s
December meeting. The primary factor behind gold’s lackluster movement is that markets anticipated a
much shallower U.S. rate cut cycle for 2025, said Kelvin Wong, OANDA’s senior market analyst for Asia
Pacific. - Macron Asks French Lawmakers Not to Topple the Government
President Emmanuel Macron called on French lawmakers to set aside their personal ambition and reject a
vote that would topple the government and throw the country into political turmoil. Far-right leader Marine
Le Pen and her National Rally party have vowed to support a no-confidence motion on Wednesday submitted
by a left-wing coalition, a motion that will pass if backed by both groups. The National Rally became the
largest single party in the lower house of parliament in a June snap election, transforming Le Pen into Paris’s
most influential power broker. But Macron expressed confidence that politicians would step back from the
brink. - Chinese Leaders Plan to Discuss GDP Target, Stimulus Next Week
China’s top leaders plan to start the annual closed-door Central Economic Work Conference next Wednesday
to map out economic targets and stimulus plans for 2025, according to people familiar with the matter.
The high-profile conclave, scrutinized by investors for how officials steering the world’s No. 2 economy plan
to direct monetary, fiscal and industrial policies, will last for two days, the people added. The meeting is
normally attended by the nation’s top leadership including President Xi Jinping as well as senior financial
regulators, and was held on the same dates last year. - China’s Central Bank Chief Signals Support for Economy in 2025
China’s central bank governor reaffirmed plans for a supportive monetary policy to promote growth next
year, as the economy faces fresh challenges from a looming trade war with the US during Donald Trump’s
second term. The People’s Bank of China will adhere to an accommodative monetary policy stance and
orientation in 2025, Governor Pan Gongsheng said at a financial forum in Beijing on Monday, according to a
statement published by the central bank. Pan reiterated the central bank will step up counter-cyclical policy
adjustment, a phrase typically referring to measures to boost the slowing economy. The PBOC will also use
various tools to keep liquidity ample and lower borrowing costs for companies and residents, he added.
Monetary policy support will be critical to China’s economy next year as the US president-elect has vowed to
impose steep tariffs on Chinese goods. That threatens the outlook of exports, which have been a key growth
driver for China since the pandemic. The yuan fell to the lowest level in about a year versus the greenback on
Tuesday, as traders added bearish wagers on lackluster China growth amid risks of higher US tariffs. - Trump’s Election Powers US Business Sentiment to Multi-Year High
Surveys since Donald Trump’s election victory show American companies are growing more upbeat about
their prospects in anticipation of more pro-business policies and less regulatory burden. From factory floors
to construction sites to farmlands, optimism in various regional Federal Reserve bank and other surveys
represents another chapter in the Trump Bump that began with a stock market rally following the Nov. 5
election, delivered a stronger dollar and supercharged Bitcoin prices. The more sanguine view from the
trenches stands in contrast to that of many Wall Street economists, who expect cooler growth amid
trepidation about the economic fallout from tariffs Trump has threatened to impose on imported goods. - Asian chip stocks mostly rise, shrugging off new U.S. semiconductor export curbs on China
Major Asian chip stocks outside of China rose Tuesday, shrugging off a new round of U.S. semiconductor
export curbs on Beijing. Taiwan’s TSMC was up 2.4%, while several Japanese chip stocks also gained, with
Tokyo Electron up nearly 5%. - Australia’s third-quarter GDP grows at a slower-than-expected 0.3% amid higher rates and sticky
inflation
Australia’s economy grew at slower than expected in the third quarter, as elevated borrowing costs and
sticky inflation continued to weigh down on the slowing economy. The real gross domestic product rose 0.3%
in the three months through September compared with 0.2% in the previous quarter, according to the
Australian Bureau of Statistics said on Wednesday. On an annualized basis, Australia’s economy rose 0.8%,
also missing Reuters estimate of a 1.1% growth, following a 1% rise in the 12 months through June. - Amid political chaos, Bank of Korea says it will boost short-term liquidity and deploy measures to
stabilize the FX market
The Bank of Korea said Wednesday that it would boost short-term liquidity and deploy measures to stabilize
the FX market as needed, after South Korean President Yoon Suk Yeol lifted a surprise martial law declaration
overnight. The announcement came shortly after the BOK held an emergency board meeting, which started
around 9 a.m. local time. In a statement issued after the meeting, the central bank said it will also make any
special loans available to inject funds into the market, if needed. - Meta seeks nuclear power developers for reactors to start in early 2030s
Meta (NASDAQ:META) said on Tuesday it is seeking proposals from nuclear power developers to help meet
its artificial intelligence and environment goals, becoming the latest big tech company to take interest in
atomic power amid an expected boom in electricity demand. The company wants to add 1 to 4 gigawatts of
new U.S. nuclear generation capacity starting in the early 2030s, it said in a release. A typical U.S. nuclear
plant has a capacity of about 1 gigawatt. At Meta, we believe nuclear energy will play a pivotal role in the
transition to a cleaner, more reliable, and diversified electric grid, the company said in a release. U.S. data
center power use is expected to roughly triple between 2023 and 2030 and will require about 47 gigawatts of
new generation capacity, according to Goldman Sachs estimates. But it will be tough to swiftly meet soaring
power demand with nuclear reactors, as companies face an overburdened U.S. Nuclear Regulatory
Commission, potential uranium fuel supply obstacles and local opposition. Microsoft (NASDAQ:MSFT)
and Constellation Energy (NASDAQ:CEG) announced a deal in September to restart a unit at the Three Mile
Island plant in Pennsylvania in what would be the first-ever restart for a data center. That announcement
followed a similar agreement in March in which Amazon.com (NASDAQ:AMZN), purchased a nuclear
powered data center from Talen Energy. - Exclusive-Intel approaches candidates for CEO role, including former board member Lip-Bu Tan, sources
say
Intel has started evaluating a handful of outsiders, including former board member Lip-Bu Tan, for the role of
chief executive after the struggling American chipmaking icon ousted company veteran Pat Gelsinger,
according to people familiar with the matter. Tan, a well-respected semiconductor industry veteran who has
long been seen as a contender for CEO at Intel (NASDAQ:INTC), has been approached by Intel’s board in
recent days to gauge his interest in taking up the job, the sources said, requesting anonymity as the
discussions are confidential. Intel’s board is mostly evaluating outsider candidates for the role and has also
approached Marvell (NASDAQ:MRVL) Technology CEO Matt Murphy, two of the sources said. The
deliberations on the CEO succession are at an early stage, the sources said, cautioning that Intel has not yet
zeroed in on any candidate to replace Gelsinger who stepped down from his role on Monday after being
given the choice to retire or be removed. The move to replace Gelsinger – who took charge of Intel less than
four years ago – came after the board decided that the pace of his costly plan to turn around Intel’s fortunes
was not quick enough. The board has formed a search committee for Gelsinger’s successor and is expected to
make a final decision on his replacement in the coming months, the sources said. The company on Monday
named Chief Financial Officer David Zinsner and senior executive Michelle Johnston Holthaus as interim co
CEOs. - Mitsubishi Corp Loses $90 Million in Suspected Copper Fraud
Mitsubishi Corp. has suffered a loss of more than $90 million in China after uncovering suspected fraud by
one of its copper traders, according to people familiar with the matter. The loss is the latest in a string of
recent cases of alleged wrongdoing to hit a major commodity trading house, highlighting the risk that
individual traders who handle billions of dollars in commodities may seek to enrich themselves at the
expense of their own companies. In October, Trafigura Group said it was facing a $1.1 billion hit in Mongolia
involving suspected wrongdoing by its own employees. While the scale of Mitsubishi’s loss is considerably
smaller, it has nonetheless sent a chill through the huge but conservative Japanese trading house. Mitsubishi
dismissed Gong Huayong, a Shanghai-based copper trader at one of its China units, after finding that he had
made unauthorized trades with local companies, including some that were related to him, the people said.
The losses amounted to well over 600 million yuan ($82.8 million), they said, declining to be identified as they
aren’t authorized to speak publicly. That matches a loss of 13.8 billion yen ($92.2 million) that Mitsubishi
disclosed in its most recent quarterly results, citing a “loss in Chinese trading business,” without further
explanation. The hit was primarily the result of Gong’s actions, the people said. Mitsubishi Corp. shares slid as
much as 2.1% on the news, though they later recovered ground to trade down 1.2% at around 10:15 a.m.
Singapore time.
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