Free Trial

Firms Amid Further Tech Equity Gains, Korean Bonds Remain On Watchlist For WGBI Inclusion


1 month USD/KRW finished the NY session close to 1294, a 0.78% gain in won terms for Thursday's session. The pair remains well within recent ranges, with earlier lows in the week coming in close to 1290. Highs early yesterday were close to 1305. Note onshore spot finished yesterday's session at 1299.05.

  • We have already had IP figures print for Feb, coming in weaker than expected (-3.2% m/m, versus -0.6% forecast). The y/y print was -8.1%, (-7.5% forecast), which was still an improvement from a momentum standpoint, as the prior was -13%. The cyclical leading index was -0.3 for Feb, same as last month.
  • As expected, FTSE/Russell refrained from adding Korean bonds to the WGBI, but they remain on the watchlist.
  • Comments from the Finance Ministry stated the country will do its utmost to achieve inclusion in 2023. The Vice Finance Minister stated March Exports likely fell at a faster pace compared to Feb.
  • This data prints tomorrow and note the consensus expects export growth at -16.0% y/y (-7.5% prior).
  • In the equity space, the lead for the Kospi remains positive given the SOX (+1.62%) and MSCI IT (1.12%) both recorded solid gains for Thursday's session. See the chart below.

Fig 1: Kospi & Global IT Equities

Source: MNI - Market News/Bloomberg

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.