Dubai Telegraph - Seoul stocks weaken, Paris advances despite political turmoil

In Europe, Paris stocks managed to advance while the euro dipped as France's government faced no-confidence votes later in the day that could spell the end of the administration of Prime Minister Michel Barnier.

Oil prices turned lower after surging around 2.5 percent Tuesday mainly after the United States sanctioned 35 companies and ships it accused of involvement with Iran's "shadow fleet" illicitly selling Iranian oil to foreign markets.

Major producers at the OPEC+ grouping led by Saudi Arabia and Russia were set to meet Thursday to discuss extending output limits.

"Political turmoil in both France and South Korea provide a uncertain backdrop for global markets, with the likely removal of both Barnier and Yoon bringing the potential for both countries to find a fresh direction," said Joshua Mahony, chief market analyst at Scope Markets.

Yoon plunged South Korea into political chaos by imposing martial law and ordering troops and helicopters to parliament, before being forced into a U-turn.

It was the first time in more than four decades that martial law was in force in the country of 52 million people.

The suspension of civilian rule was to "safeguard a liberal South Korea from the threats posed by North Korea's communist forces and to eliminate anti-state elements plundering people's freedom and happiness", Yoon said.

Seoul's Kospi stocks index ended down more than one percent, having shed as much as 2.3 percent at the open.

South Koreans took to the streets in mass protest and the nation's largest umbrella labour union called an "indefinite general strike" until Yoon resigned.

The won tumbled more than three percent to a two-year low of 1,444 per dollar after the declaration, then bounced back to around 1,414 following the U-turn.

Thomas Mathews, head of Asia-Pacific markets at Capital Economics, said the losses could have been "much worse" had the president not aborted his plan.

"Rarely does a combined sell-off in a country's stocks, bonds and currency feel like a relief rally," he said.

"Investors now 'only' have to worry about a period of significant political uncertainty," said Mathews, as South Korea's finance ministry and central bank looked to provide stability and reassure markets.

"From a macro perspective, South Korea was already one of the more vulnerable countries to the impact of Trump's proposed tariffs," said analyst Michael Wan at financial group MUFG.

"This recent development could raise some further risk premium on the currency at least until we get clarity on political stability."

The losses in Seoul came on a mixed day for Asia stock markets.

In Europe, London fell while Frankfurt advanced to hit another record high after ending Tuesday above 20,000 points for the first time.

Wall Street pushed higher, with the major indices pushing further into record territory.

Salesforce shares jumped over eight percent after the business software firm released earnings and discussed its AI plans.

The market's "focus is on the good vibes flowing out of Salesforce's earnings report and commentary," said market analyst Patrick O'Hare at Briefing.com.

- Key figures around 1630 GMT -

New York - Dow: UP 0.6 percent at 44,959.76 points

New York - S&P 500: UP 0.4 percent at 6,074.19

New York - Nasdaq Composite: UP 0.9 percent at 19,659.01

London - FTSE 100: DOWN 0.3 percent at 8,335.81

Paris - CAC 40: UP 0.7 percent at 7,303.28

Frankfurt - DAX: UP 1.1 percent at 20,232.14

Seoul - Kospi Index: DOWN 1.4 percent at 2,464.00 (close)

Tokyo - Nikkei 225: UP 0.1 percent at 39,276.39 (close)

Hong Kong - Hang Seng Index: FLAT at 19,742.46 (close)

Shanghai - Composite: DOWN 0.4 percent at 3,364.65 (close)

Euro/dollar: UP at $1.0534 from $1.0511 on Tuesday

Pound/dollar: UP at $1.2714 from $1.2673

Dollar/yen: UP at 150.15 yen from 149.53 yen

Euro/pound: DOWN at 82.85 from 82.94 pence

Brent North Sea Crude: DOWN 0.6 percent at $73.20 per barrel

West Texas Intermediate: DOWN 0.6 percent at $69.53 per barrel

burs-rl/cw

H.Hajar--DT