1 Month USD/KRW Sub 1320, Strong Equity Inflows Yesterday, IP On Tap Today

1 month USD/KRW finished the NY session close to 1318, down from session highs near 1325. The won benefited from the pull back in USD/CNH, coupled with lower US yields. A rebound in yen also likely helped at the margins. Recent lows for the 1 month come in the 1315/16 region. Note onshore spot closed yesterday at 1325.

• Tech related equities outperformed at the margins, with the SOX +0.1%, while the MSCI IT rose 0.49% for Tuesday's session. This follows the Kospi's +1% gain yesterday, while offshore investors added just under $600mn to local shares.
• The early focus today is the on the outcome of North Korea's space vehicle launch, which the South Korean authorities state may have failed. South Korea may hold a National Security meeting, but broader market sentiment hasn't been impacted so far.
• On the data front, coming up shortly we have Apr IP, the market expects -2.0% m/m (prior 5.1%), while for y/y the pace is projected at -7.8% (prior -7.6%). The cyclical leading index is also set to print, -0.3 was the last outcome.
• Note that the National Pension Fund will hold a meeting at 2pm today to discuss asset allocation for the 2024-28 period.