BENGALURU: The South Korean won and shares plummeted on Friday following fresh reports of a potential second martial law, which had earlier this week unsettled traders before being retracted swiftly, while other Asian markets were largely mixed.

The won initially plunged 1.1% against the US dollar before recovering to trade 0.4% lower, likely due to suspected central bank intervention for the second time this week.

The won, the worst performing currency in Asia this year, is set to lose over 1.7% this week as the political turmoil in the wake of President Yoon Suk Yeol’s reversal of martial law declaration late on Tuesday dented sentiment.

The benchmark KOSPI stock index, also the worst performer in the region, fell for a third consecutive session, hitting its lowest since Nov. 15.

Meanwhile, Thailand’s baht surged 0.4% to its highest since Nov. 8, gaining nearly 1% during a holiday-thinned week, driven by a 28% year-to-date rise in foreign tourist arrivals and a projected 4% growth in exports, both vital for the economy.

The Indian rupee was stable after the Reserve Bank of India maintained its key rates but cut the cash reserve ratio that banks are required to hold, effectively easing monetary conditions as economic growth slows. The currency hit an all-time low of 84.7575 on Tuesday.

Most other Asian currencies traded flat, with the Taiwanese dollar adding 0.2%.

A gauge of emerging market currencies dipped as much as 0.8% this week to levels last seen in late-August as dollar strength persisted following US President-elect Donald Trump’s tariff threats.

The dollar index rose 0.1% to 105.8 after slipping towards a three-week low on Thursday.

The US November jobs report, due later in the day, is expected to indicate whether the Federal Reserve will likely cut rates by 25 basis points at its Dec. 17-18 meeting.

Asian markets focused on domestic inflation data this week, as cooling November figures in South Korea, Thailand and Indonesia boosted rate-cut expectations, while inflation rose in Taiwan and the Philippines.

“But even if inflation surprises to the upside, we do not expect material local rate reactions, as local inflation dynamics remain benign...,” analysts at Barclays said.

Shares in the region fell marginally, with Taiwanese and Malaysian stocks losing 0.2% and 0.3%, respectively, while those in Singapore fell 0.5% and Indonesia’s benchmark rose 0.4%.