San Francisco Frontiers - Asian markets mostly rise but political turmoil holds Seoul back

Japan's Nikkei index closed up 1.8 percent, with the yen's recent weakness proving a boon for major exporters. The yen hit 158.08 per US dollar on Thursday evening -- its lowest in almost six months -- before rebounding somewhat on Friday.

In Seoul, the market closed down by 1.02 percent after the won plunged to a 16-year low of 1,480.20 per US dollar on Friday morning.

South Korea is struggling to emerge from political turbulence in the wake of President Yoon Suk Yeol's martial law declaration this month, which prompted his impeachment.

Acting President Han Duck-soo was also impeached Friday in a vote that prompted ruling party lawmakers to protest with angry chants and raised fists.

South Korea's business outlook for January fell 7.3 points to 82.4 in the Bank of Korea's composite sentiment index, marking the biggest month-on-month slide since April 2020, according to data released Friday. The survey of almost 3,300 firms was conducted between December 11 and 18.

In Japan, the yen was "marginally stronger" on Friday, Bloomberg reported, after data showed inflation in Tokyo rose for a second month in December.

Other positive figures from Japan showed industrial production declined less than expected in November, while retail sales came in higher than estimated last month.

With the country's unemployment rate holding at 2.5 percent in November -- low by international standards but slightly above Japan's pre-Covid 19 pandemic average -- Moody's Analytics said on Friday that the data confirmed their view that "employment conditions are wobbly".

Investor attention is now focused "on whether the Nikkei average will expand its rise to recover to the 40,000 points range by the end of the year", said Kosuke Oka, an analyst at Monex Securities.

Bank of Japan Governor Kazuo Ueda bewildered observers last week by suggesting a prolonged pause in the institution's monetary policy tightening, in the face of domestic and international economic uncertainties, which had sent the Japanese currency tumbling.

Ueda said on Wednesday rates would be "adjusted" if the situation continued to improve on the economic and price fronts, leaving investors without a clear signal on a possible interest rate hike and contributing to the yen's slide.

"With the calendar year winding down and little in the way of tier-one economic data, the market is content mainly to drift until something shakes it from its slumber -- likely a late-year squeeze or perhaps a Trump-driven shift in global economic sentiment," said Stephen Innes from SPI Asset Management, ahead of US President-elect Donald Trump retaking the White House in January.

In Asia, Shanghai, Mumbai, Malaysia, Taipei, Singapore, Sydney and Bangkok were all in the green. Hong Kong was flat, while Manila was down.

London was down while Frankfurt and Paris were both up in early European trade.

- Key figures around 0800 GMT -

Tokyo - Nikkei 225: UP 1.8 percent at 40,281.16 points

Hang Seng: UP 0.1 percent at 20,116.93

Shanghai - Composite: UP 0.1 percent at 3,400.14

Euro/dollar: UP at $1.0419 from $1.0409

Pound/dollar: UP at $1.2532 from $1.2521

Dollar/yen: UP at 157.80 yen from 157.59 yen

Euro/pound: FLAT at 83.14 pence from 83.14 pence

West Texas Intermediate: UP at $69.80 per barrel

Brent North Sea Crude: UP at $73.40 per barrel

New York - Dow: UP 0.1 percent at 43,325.80 (close)

A.Evans--SFF