Global shares have been mixed as markets digested political turmoil in South Korea, where martial law was imposed and then lifted hours later, and France, where an upcoming no-confidence vote also put the euro in the spotlight.

In South Korea, Asia’s fourth-largest economy, MPs called on President Yoon Suk-yeol to resign or face impeachment after he declared martial law late on Tuesday only to reverse the move hours later.

The crisis left South Korea’s benchmark KOSPI index down 1.4 per cent on Wednesday, taking its year-to-date losses to over seven per cent and making it the worst performing major stock market in Asia in 2024.

In turn, MSCI’s broadest index of Asia-Pacific shares outside Japan, which counts Samsung Electronics as one of its top constituents, was mostly flat.

Most Asian markets aside from South Korea rose.

The won currency, buoyed by suspected central bank intervention, was stable, but remained close to the two-year low against the dollar that it hit late on Tuesday.

South Korea’s finance ministry said it was prepared to deploy unlimited liquidity into financial markets.

Reports said the financial regulator was ready to deploy 10 trillion won ($A11 billion) in a stock market stabilisation fund.

“Martial law itself has been lifted, but this incident creates more uncertainty in the political landscape and the economy,” said ING senior economist Min Joo Kang.

In Europe, stocks edged up 0.2 per cent and the euro traded near a two-year low ahead of the no-confidence vote in France, where the blue-chip CAC 40 was up 0.4 per cent.

French MPs will vote later in the day on motions that are all but certain to oust the fragile coalition of Prime Minister Michel Barnier, deepening the political crisis in the euro zone’s second-largest economy.

The single currency, last at $US1.0501, is down four per cent since the start of November, when investors already bracing for any widely expected tariff-heavy policies from the incoming administration of President-elect Donald Trump.

French government bonds were steady.

Wall Street futures pointed to gains, with S&P 500 e-mini futures gaining 0.2 per cent to hit a record high.

Away from political turmoil, investors are hoping for more cues to gauge the policy path the Federal Reserve will likely take next year, with a much-anticipated November employment report due on Friday.

US job openings increased solidly in October while lay-offs dropped by the most in one-and-a-half years, data showed on Tuesday, suggesting the labour market is slowing even as another survey showed employers were hesitant to hire more workers.

Markets are now ascribing a 72 per cent chance of a 25 basis point cut this month, with 80 bps of cuts expected by the end of 2025.

The spotlight now turns to Fed chair Jerome Powell, who will give on Wednesday what are expected to be his last public remarks ahead of the meeting.

In currencies, the dollar index, which measures the US currency against six rivals, was up 0.2 per cent at 106.5.

The Australian dollar fell to four-month lows as surprisingly soft economic data led markets to bring forward the likely timing of future rate cuts.

Oil prices firmed as market participants weighed up geopolitical tensions and the prospect of OPEC+ extending supply cuts against weaker demand.

Brent crude futures rose 0.2 per cent to $US73.82 a barrel, while US West Texas Intermediate crude futures added 0.2 per cent to $US70.07.

This post was originally published on Michael West.