KOSPI has consolidated since bouncing...>

SOUTH KOREA: KOSPI has consolidated since bouncing off its 50-DMA & channel

support on Nov 21, but the topside remains limited by the 76.4% retracement of

the Apr 17 - Aug 6 slide (also the YtD range), last tested on Nov 18. The

channel bottom & 200-DMA which intersect in the 2,100 area provide the nearby

bearish target. If KOSPI fills Monday's gap & breaches those levels, the focus

will turn to the 50-DMA (2,093.94) & the mid-point of the YtD range (2,071.93).

- It goes without saying that trade war dynamics remains key, with participants

awaiting any signals that things are pressing ahead in phase-one talks. Today's

signing of the Hong Kong deal by U.S. Pres Trump may have angered Beijing, but

we are yet to learn what, if anything, does it mean for trade negotiations.

KOSPI faced some pressure, but failed to break out of this week's range. 

- The index's strength may have been sapped recently by the rebalancing of MSCI

Indexes, which resulted in a higher inclusion of Chinese A shares. Investors

have been dumping South Korean stocks as they adjusted holdings accordingly.

- The BoK will deliver its MonPol decision on Friday; factory output also due.

- See chart at: https://emedia.marketnews.com/marketnewsintl/KOSPI28112019.png