1 Month USD/KRW Moves Above 1350 Faded, Onshore Markets Return Today
Moves above 1350 in the 1 month USD/KRW were faded on Monday. By late NY trade the pair was back closer to 1345, amid broader USD weakness. Higher US TSY futures helped won sentiment, along with a positive equity close for the major US indices.
- Note onshore markets return today from yesterday's holiday. Friday's onshore spot close for USD/KRW was 1350. Onshore equities closed Friday near 2400, close to multi month lows back to March of this year.
- In Monday US trade, tech related equity indices were mixed. The SOX fell -0.23%, while the MSCI IT index rose 0.39% though.
- Recent Kospi weakness has diverged from the MSCI IT equity index, see the chart below. Offshore investors have also been net sellers of local equities in October to date (-$750.9mn).
- On the data front, prints resume tomorrow, with August goods balance and current account data, which are not typically market/sentiment movers.
Fig 1: Kospi Lagging MSCI IT Improved Trend
Source: MSCI/MNI - Market News/Bloomberg