San Francisco Frontiers - Seoul stocks weaken, Paris edges up tracking political turmoil

In Europe, Paris stocks managed to edge higher in midday deals as the euro dipped, with France's government facing no-confidence votes later in the day that could spell the end of the administration of Prime Minister Michel Barnier.

Oil prices extended gains 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.

Crude won additional support from reports that major producers at the OPEC+ grouping were close to a deal to extend 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.

Yoon's bombshell announcement in an emergency television address to the nation late Tuesday meant that for the first time in more than four decades 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 hit another record high after ending Tuesday above 20,000 points for the first time.

Wall Street provided a healthy lead, with the S&P 500 and Nasdaq hitting new highs Tuesday as investors assessed the chances of the Federal Reserve slashing interest rates again this month.

- Key figures around 1115 GMT -

London - FTSE 100: DOWN 0.3 percent at 8,332.41 points

Paris - CAC 40: UP 0.4 percent at 7,283.70

Frankfurt - DAX: UP 0.9 percent at 20,204.31

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)

New York - Dow: DOWN 0.2 percent at 44,705.53 (close)

Euro/dollar: DOWN at $1.0499 from $1.0511 on Tuesday

Pound/dollar: DOWN at $1.2663 from $1.2673

Dollar/yen: UP at 150.99 yen from 149.53 yen

Euro/pound: DOWN at 82.90 from 82.94 pence

Brent North Sea Crude: UP 0.6 percent at $74.03 per barrel

West Texas Intermediate: UP 0.5 percent at $70.12 per barrel

P.Thomas--SFF