ANZ highlights that the "South Korean.........>

KOREA: ANZ highlights that the "South Korean outlook has become more

challenging. With export growth off its peak, the waning strength of domestic

demand exacerbates the downside risks to growth. We see little in the way of

demand-pull price pressures through this year, making rate hikes unlikely until

late 2019."

- ANZ notes that the "KRW was among the better performers in Asia earlier this

year, helped by positive fundamentals and hopes of easing geopolitical risks in

the Korea Peninsula. After the US-North Korea summit, the KRW started to slide

like its regional peers, losing as much as 4.8% against the USD as of end-June.

We remain cautious on the KRW in the near term due to heightened tensions in the

global trade arena in which South Korea is a key player. In fact, signs of an

easing in exports have already emerged. A rebound in the KRW hinges on trade

tensions abating."