CNH Lags G10 FX Gains, KRW and TWD Aided By Tech Equity Gains

USD/CNH is back sub 7.1800, although is only down modestly on end Thursday levels. The pair is underperforming G10 gains against the USD and some parts of the Asia FX complex. China equities aren't rallying with the rest of the region. The CSI 300 is close to flat at this stage.

• Lingering growth concerns is likely weighing on some broader China related assets, which could be slowing CNH's advance at the margin. The CNY CFETS basket has tracked to multi month lows in recent sessions.
• USD/KRW is probing sub 1360, but remains above earlier August lows near 1355. The continued recovery in global equity sentiment is offsetting reduced Fed easing odds (in terms of magnitude for the September meeting). The Kospi is up nearly 2%.
• It is a similar backdrop for USD/TWD, although like USD/TWD, the pair remains a touch above recent lows. Spot sits near 32.30, with a break sub 32.25 potentially paving the way for a move towards the low 32.00 region.
• We are seeing a gradual return of offshore inflows to both South Korean and Taiwan equities, although August to date remains in negative territory.