KRW and CNH Enjoy Positive Spill Over From Equity Gains

USD/Asia pairs are mostly lower, albeit to varying degrees. Positive spillover from regional equity gains is evident. USD/CNH is back sub 7.1700, while 1 month USD/KRW is back to the 1312 handle. PHP has also had its first gain in 5 sessions. Gains have been less evident elsewhere, with the upcoming US CPI print likely providing some caution. Tomorrow the main focus will be on China Dec inflation data, while Dec trade figures are also out.

• China equities are finally seeing some positive gains, the CSI 300 up nearly 1%, with surging HK markets (HSI +2%) helping. This is amidst broader regional gains and positive US futures. USD/CNH is back sub 7.1700 after opening above 7.1830. The USD/CNY fixing error widened as well.
• 1 month USD/KRW is tracking lower, last near 1312, around 0.40% stronger in won terms. Positive spill over from equity gains has been evident, along with lower USD levels against the G10. Still, offshore investors have sold a chunky -$352.5mn of local shares. The BoK held rates steady as expected. The implicit tightening bias was removed, but Governor Rhee stated rates cuts within 6 months was unlikely.
• USD/THB is a touch higher, but continues to find selling interest above 35.00. Comments late yesterday from Pm Srettha around BoT's independence have likely aided sentiment and reduced fears of a near term policy shift. On the data front, consumer confidence continues to improve, up to 62 from 60.9, which is highs back to early 2020.
• PHP is tracking higher for the first time in 5 sessions. USD/PHP is back near 56.10, after Wednesday highs near 56.40. Higher onshore equities (+1.2%), and lower oil prices are likely helping Peso sentiment at the margins.
• USD/IDR is relatively steady, last little changed at 15560/65, with the 1 month NDF slightly higher. The rupiah is not enjoying positive spill over from stronger equities seen in the region so far today.