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ASIA FX: Won Rebounds With HK Equities, CNY & TWD Out

ASIA FX
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It has remained reasonably quiet in North East Asia FX, with China markets still closed and Taiwan markets also out today. South Korean markets have returned, but are out again tomorrow. 

  • Returning Hong Kong markets have given broader risk appetite a positive boost. The HSI is up 6% at the lunch time break, after stimulus optimism continues to buoy sentiment. Beijing is the latest city to announce easier property buying conditions. Property gauges in Hong Kong have surged today. One Bloomberg measure is more than 100% firmer from recent lows.
  • The USD/CNH has moved lower as a result, but found some buying interest sub 7.0100. CNH hasn't been helped at the margins by higher USD/JPY levels.
  • Spot USD/KRW has risen as on markets return, but is off earlier highs, the pair last near 1318 (earlier highs at 1323.6). The 1 month NDF was last near 1316, so around 0.50% stronger in won terms versus end Tuesday levels in the US. Local equities are down, but away from worst levels, (Kospi last -0.65%). The gains in HK and China-related indices providing some offset. On the data front, headline CPI was softer in September at 1.6%y/y, below the BoK's 2% target. Core inflation though was at 2.0%y/y, in line with the market's expectation. This should increase focus on next week's BoK meeting.
  • The South Korean Sep PMI was also noticeably weaker (48.3, from 51.9 per S&P). This hints at a less supportive external backdrop. 
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It has remained reasonably quiet in North East Asia FX, with China markets still closed and Taiwan markets also out today. South Korean markets have returned, but are out again tomorrow. 

  • Returning Hong Kong markets have given broader risk appetite a positive boost. The HSI is up 6% at the lunch time break, after stimulus optimism continues to buoy sentiment. Beijing is the latest city to announce easier property buying conditions. Property gauges in Hong Kong have surged today. One Bloomberg measure is more than 100% firmer from recent lows.
  • The USD/CNH has moved lower as a result, but found some buying interest sub 7.0100. CNH hasn't been helped at the margins by higher USD/JPY levels.
  • Spot USD/KRW has risen as on markets return, but is off earlier highs, the pair last near 1318 (earlier highs at 1323.6). The 1 month NDF was last near 1316, so around 0.50% stronger in won terms versus end Tuesday levels in the US. Local equities are down, but away from worst levels, (Kospi last -0.65%). The gains in HK and China-related indices providing some offset. On the data front, headline CPI was softer in September at 1.6%y/y, below the BoK's 2% target. Core inflation though was at 2.0%y/y, in line with the market's expectation. This should increase focus on next week's BoK meeting.
  • The South Korean Sep PMI was also noticeably weaker (48.3, from 51.9 per S&P). This hints at a less supportive external backdrop.