Exchange-traded funds linked to South Korean stocks fell after President Yoon Suk Yeol declared martial law in an unannounced late-night address live on YTN television, causing the South Korean won to drop to a more than two-year low against the US dollar on Tuesday ( Dec 3 ) and exchange-traded funds linked to South Korean stocks to decline.
The North Korean system fell to as low as 1, 430.82 won per money, the lowest since October 2022. It was last down 1.9 per share at 1, 430.60.
” It’s uncertainty driven… one of those’ shoot first, ask questions later’ ( moves )”, said Christopher Wong, FX and rates strategist at OCBC in Singapore. ” Given the lack of details, the doubt may also maintain Asian fought under pressure in the interim”.
Yoon claimed that he had no other choice but to use this measure to protect completely and constitutional order and that the opposition parties had taken the legislative process hostage to create a crisis in the nation.
Stocks listed globally swooned. The Franklin FTSE South Korea ETF decreased 3.2 %, while the MSCI South Korea ETF decreased 4.5 %.
The gained is one of Asia’s worst singers, having lost more than 9 % so far this year, and has been repeatedly under strain as investors fled a business they see as greatly subject to US trade tariffs and export cuts.
The looming threat of taxes and their detrimental effects on export-driven markets are now putting pressure on the Vietnamese won, according to Rong Ren Goh, a portfolio manager for Eastspring Investments in Singapore.
” This latest development is likely to exacerbate the currency’s weakness, encouraging speculators to use the won as a high-beta proxy for expressing tariff-related risks”.