Political Tensions Weigh on Asian Markets

Investor sentiment in Asia has been shaken ahead of the U.S. nonfarm payrolls report, particularly due to fears of potential martial law in South Korea, which led to significant declines in the Korean won and the KOSPI index. South Korean authorities intervened to stabilize the won by selling U.S. dollars, while a military commander reassured the public by refusing any new martial law orders. The upcoming U.S. payroll data is expected to show a rebound in job growth, with estimates around 200,000 jobs added in November. Wall Street remains optimistic, with a consensus suggesting a strong labor market despite a slight uptick in jobless claims. Meanwhile, Bitcoin has surged past $100,000, reflecting a strong risk appetite among investors, possibly influenced by political developments in the U.S. and France. Overall, markets are bracing for a potential shift based on the payroll data, with futures indicating a 70% chance of a Federal Reserve rate cut by December 18.