HONG KONG — Asian financial markets experienced a decline on Wednesday, influenced by a political upheaval in South Korea that intensified regional uncertainties, although the Kospi index in Seoul fell by less than 2%.

Futures in the United States saw an uptick, while oil prices remained relatively stable.

In a sudden move on Tuesday evening, South Korean President Yoon Suk Yeol announced martial law, surrounding the parliament with military troops. He accused pro-North Korean factions of orchestrating a potential coup against one of the most dynamic democracies globally. The martial law order was lifted approximately six hours later.

The announcement led South Korea’s main opposition party to demand President Yoon’s immediate resignation or face the possible impeachment process.

As a consequence of Yoon’s decision, the South Korean won plummeted to a two-year low against the U.S. dollar, experiencing losses near 2%. This marked its most significant one-day drop since the market reacted dramatically to Donald Trump’s election victory in 2016. However, the won did recover some of its losses by Wednesday, trading at 1,414.43 won, an improvement from Tuesday’s peak of 1,443.40 won.

The Kospi index fell by 1.9%, closing at 2,451.64, with shares of Samsung Electronics, South Korea’s largest corporation, decreasing by 1.1%. Moreover, the nation’s financial regulator expressed readiness to inject 10 trillion won (approximately $7.07 billion) into a stabilization fund for the stock market, as reported by Yonhap news agency.

In other regional developments, China announced on Tuesday that it would restrict the export of high-tech materials including gallium, germanium, and antimony to the United States, which have potential military uses. This decision followed the U.S. expanding its list of Chinese companies subjected to export controls concerning computer chip-making technology and software.

Hong Kong’s Hang Seng index saw a marginal increase of less than 0.1%, finishing at 19,752.59, while the Shanghai Composite index slightly declined by 0.1% to end at 3,375.20.

In Japan, the Nikkei 225 index dropped by 0.4% to close at 39,077.04. Australia’s S&P/ASX 200 index fell by 0.5%, reaching 8,454.10.

On the previous day, U.S. stock markets continued their trend of breaking records, adding to what has been an impressive year overall. The S&P 500 index increased by less than 0.1%, reaching an all-time high of 6,049.88, marking its 55th record this year. Conversely, the Dow Jones Industrial Average decreased by 0.2% to 44,705.53, while the Nasdaq composite index rose by 0.4% to 19,480.91, achieving its own record following the previous day.

Treasury yields remained stable after a report indicated that U.S. employers had slightly more job openings at the end of October compared to the previous month. This positive trend raises hopes that the economy may avoid a recession, which had previously seemed likely to many investors.

The yield on the 10-year Treasury bond climbed from 4.20% to 4.23% since late Monday.

Yields have fluctuated since the Election Day, reflecting concerns over potential inflation driven by Trump’s advocacy for lower taxes and increased tariffs. Despite this, traders are optimistic the Federal Reserve will lower its main interest rate in the upcoming meeting in two weeks.

Predictions based on data from CME Group show a nearly 75% chance that this will take place. While lower interest rates could stimulate economic growth, they may simultaneously exacerbate inflationary pressures.

A key report anticipated to influence the Fed’s decisions will be released on Friday, detailing hiring and firing trends among U.S. companies for November. This information may be complicated to interpret due to disruptions caused by storms and strikes in October.

According to strategists at Barclays Capital, trading dynamics in the options market suggest that Friday’s jobs report could significantly impact market movements prior to the Fed’s interest rate announcement on December 18.

In the energy sector, U.S. crude oil prices slightly dipped, losing 5 cents to reach $69.99 per barrel, while Brent crude saw a gain of 7 cents, finishing at $73.69 per barrel.

In currency trading, the U.S. dollar climbed to 149.75 Japanese yen compared to the previous value of 149.59 yen. Meanwhile, the euro traded at $1.0495, down from $1.0510.