Asian Shares Decline Amid Political Turmoil In South Korea

(RTTNews) - Most Asian stocks fell on Wednesday as South Korea plunged into political chaos and data showed China's services activity expansion eased in November.

The dollar held ground as investors awaited U.S. jobs data and remarks from Federal Reserve Chair Jerome Powell for additional clarity on the U.S. rate outlook.

Gold edged up slightly after two Federal Reserve policymakers said they'll support another interest rate cut later this month.

Oil extended sharp gains from the previous session as markets braced for OPEC+ to declare an extension of production curbs this week.

Geopolitical tension also remained on investors' radar after Israel threatened to attack the Lebanese state if its truce with Hezbollah fails.

China's Shanghai Composite index dipped 0.42 percent to 3,364.65 after new data showed China's services activity expanded at a slower pace in November, pressured by easing new business growth.

The downside was capped as the People's Bank of China extended its support for the yuan by setting the daily reference rate significantly stronger than the average estimate.

Hong Kong's Hang Seng index ended marginally lower at 19,742.46 as traders waited to see whether Beijing will unveil more economic stimulus measures at a key policy meeting later this month.

Japanese markets fluctuated before ending on a flat note as the dollar bounced back from a three-week low against the yen and data showed Japan's service activity swung back to growth in November.

The Nikkei average finished marginally higher at 39,276.39 while the broader Topix index settled 0.47 percent lower at 2,740.60.

Seoul stocks ended sharply lower as President Yoon Suk Yeol declared martial law in a dramatic move and lifted the decree hours later, plunging the country into political chaos. The Kospi average ended 1.44 percent lower at 2,464.

Shares of heavyweight Samsung Electronics briefly tumbled 3 percent before closing 0.9 percent lower at 53,100 won as officials pledged "unlimited" support to markets.

Australian markets fell modestly after Q3 GDP growth came in below forecasts, raising bets that the Reserve Bank of Australia (RBA) is likely to cut interest rates in early 2025.

The benchmark S&P/ASX 200 dropped 0.38 percent to 8,462.60, after having reached a record high the day before. Banks were hit hard, while mining stocks surged on hopes for Chinese economic stimulus.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index fell 1.50 percent to 12,896.67.

U.S. stocks ended mixed overnight as data showed job openings picked up and layoffs eased in October. Fed Bank of San Francisco President Mary Daly said a rate cut this month isn't certain but remains on the table.

The tech-heavy Nasdaq Composite rose 0.4 percent and the S&P 500 finished marginally higher to reach new record closing highs while the Dow eased 0.2 percent.