ASIA FX: NEA FX Resilient To Equity Losses

North East Asia FX trends are similar to last risk off period in early August, with the majority of the negative spill over seen in equities rather than FX. Tech sensitive markets like Taiwan and South Korea are seeing sharp losses, off nearly 4% for the Taiex and nearly 3% for the Kospi. We are away from session lows for both indices though.

• Spot KRW and TWD are only modestly weaker though. USD/KRW sits little changed, last near 1342, with intra-session Tuesday highs just above 1345 remaining intact. We haven't been able to breach 1340 on the downside.
• USD/TWD is up more, the pair last near 32.16, off 0.25% in TWD terms. The prospect of more equity outflows from Taiwan a potential near term headwind. USD/TWD spot is now back above its 20 and 200-day EMAs.
• USD/CNH is back sub 7.1100, outperforming the USD/JPY weakness at the margins for Wednesday trade so far. The USD/CNY fixing was close to neutral. The Caixin services PMI for August was 51.6 versus 51.8 forecast, but didn't impact sentiment. Onshore equities are down but only modestly at this stage (CSI 300 off 0.40% at the lunch break).