KOSPI is running out of fuel ahead of...>

SOUTH KOREA: KOSPI is running out of fuel ahead of the 2,100.00 mark. The round

figure coincides with the 200-DMA, earlier rejected in Sep and Jul. The nearby

presence of a longer-term descending trendline and a resistance zone from the

Sep 24 & Jul 23 highs also saps topside momentum. It is premature to speak of a

bearish reversal, but worth keeping an eye on the Oct 10 low at 2,010.90 as a

break here would confirm a double top pattern. Worth adding that the index seems

to be tracking a ~50 day cycle & hasn't yet moved far from the recent trough.

- South Korea has fallen prey to the U.S.-China spat & Seoul's own conflict with

Japan. Pres Moon noted that the country's economy is in a "grave situation."

- But there are bright spots. The U.S. & China keep flagging their interest in

closing a limited deal, while a tete-a-tete between S. Korean PM Lee & Japanese

PM Abe concluded with a joint communique stressing the need to ease tensions.

- The numbers have been mixed this week. A generally weak GDP report revealed a

pick-up in exports, while cons. conf. improved (but still < 100).

- Impact of S. Korea dropping EM status at the WTO is yet to crystallize.

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