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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
KRW
1 month USD/KRW finished close to recent highs in NY trade, just under the 1264 level. We saw roughly a 10 won move through NY trade from lows around the 1254 level. The won faltered amid the USD turnaround/shift higher in US yields. Note onshore spot ended yesterday at 1260.30.
- US equity sentiment faltered in later trade, although tech related indices didn't fall too much, the MSCI IT down 0.34% for Thursday's session, while the SOX actually rose +0.13%.
- To recap, the Kospi was down slightly in trade yesterday, but the Kosdaq still rose 0.59%, while offshore investors added $257.1mn to local shares.
- The chart below overlays the rolling 1 month sum of offshore net equity flows, versus 1 month changes in KRW/USD (1 month NDF). Flows are just off their recent highs, although have remained positive for the past week, while the 1 month NDF is off around 2% in won terms over the past month, creating some divergence between the two series.
- The data calendar is empty today. The Finance Minister will hold a meeting on economic regulation at 10:30am local time. The other focus point could be North Korea, given recent military exercises/parades and a potentially new ICBM. Still, such developments haven't impacted South Korea asset sentiment so far.
Fig 1: South Korea Offshore Rolling Net Equity Flows (USDmn) Versus KRW/USD 1 Month Change
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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