(Bloomberg) — Asian equities traded in a narrow range while the region’s currencies stayed relatively calm, as traders digested the effects of the political storms in France and South Korea. Bitcoin exceeded $100,000.
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Stock benchmarks gained in Japan and Taiwan, while indexes in China and Hong Kong fell. Korean equities retreated, with the country’s ruling party looking to prevent President Yoon Suk Yeol’s impeachment by voting against a motion to initiate proceedings that may take place Saturday.
Bitcoin extended a rally from Wednesday to hit the $100,000 mark for the first time ever, after President-elect Donald Trump picked a crypto proponent to be the next head of the US securities regulator.
A broadly bullish outlook worldwide, triggered by Federal Reserve Chair Jerome Powell’s latest comments on the US economy and a jump in US tech stocks, is outweighing uncertainties stemming from the political instability in South Korea and France. The S&P 500 index rallied to another record overnight, with traders now waiting for the non-farm payrolls data due Friday.
South Korea’s won slipped, with policymakers urging calm in financial markets after the martial-law decree that stunned the nation. The euro faced further headwinds as France’s far-right leader Marine Le Pen and a left-wing coalition voted against Prime Minister Michel Barnier’s administration, muddying the outlook for investors.
“This type of political noise is really hard to forecast,” Park Seok Gil, chief Korea economist for JPMorgan, told Bloomberg Television, referring to the situation in South Korea. The budget, which has emerged as a key sticking point during the tumultuous week, “will be passed, ultimately, but it may be a near-term drag,” he said.
Singapore’s stock benchmark was on pace for a record close on renewed optimism around its banks and after Robinhood Markets Inc. said it will expand into Asia next year by tapping the city-state as its base in the region. The Straits Times index is the best performing gauge in Southeast Asia this year, up 18%.
In China, the official Xinhua News Agency released a series of articles ahead of a key economic meeting next week, warning against blindly chasing faster growth and signaled more focus on boosting consumption.
The yield on 10-year US Treasuries climbed one basis point in Asian trading after sliding on Wednesday, while an index of the dollar was steady. US stock futures edged lower.