Exports Strong In December, Won Strengthens

USD/KRW opened lower on a weaker USD, but ground higher in the early part of Asia trade as the greenback regained a limited amount of poise. The pair last down 0.60 at 1099,60. Having touched session lows of 1098.05.

• Data earlier in the session showed exports continued to rise in January, exports rose 11% in the first 20 days of the year, with average daily shipments steady around 11% compared to 7.9% in December.
• The uptick in exports was attributed to demand for tech products which were resilient even amid a global resurgence of the coronavirus. The government has said previously it forecasts a 10% increase in chip exports, and an 8.6% rise in overall shipments as it aims for 3% growth.
• Also released earlier in the session was December PPI which printed 0.1%, up from -0.3% in November.
• Coronavirus cases seem to be under control, there were 401 new cases in the last 24 hours – in line with yesterday.
• Exchange data shows foreign investors bought a net $27.86m of South Korean equities yesterday as the Kospi rose 0.6%. This equates to net buying so far this week of around $460m. Foreign funds sold a net $49.36m in bonds, resulting in net sales for 2 out of 3 days this week.