Coronavirus Containment A Priority

South Korean President Moon Jae-in said that the country's top priority is to tackle coronavirus.

• Moon also said housing market stability is also a crucial policy task, and the government forecasts chip exports will increase 10% in 2021.
• There is speculation that South Korea could seek an extra budget after Lee Nak-yon, head of the ruling Democratic Party, said that third cash handout will be provided before Lunar New Year, which has seen discussion of another handout ahead of elections in April.
• Sentiment in the region has taken a hit, equity markets are broadly flat as participants digest the latest coronavirus developments and lock in some profits after 6 consecutive sessions of gains.
• USD/KRW is up 1.95 at 1084.00, the pair has ticked lower through Asia after gapping higher at the open on US dollar strength. The pair has pulled back after testing the December low at 1080 again yesterday.
• Yields lower, the curve bull steepening as 1-2-year sectors see heavy buying. 2-Year yield down 0.9bps at 0.854%