Won Recovers Ground, But Tech Equities Softer

1 month USD/KRW moved lower post the Asia-close, settling in the low 1280 region. Cross asset signals are mixed for the won though ahead of today's session, there is little in the way of domestic event risks to note.

• Yesterday's bout of won strength proved to be short lived. The much weaker than expected China activity data took the pair back above 1280.
• The 1 month USD/KRW NDF softened post the Asia close though, as broader USD sentiment weakened and US yields edged down. We closed NY at 1281 (note spot ended yesterday at 1284).
• Still, the weaker finish for US tech stocks, Nasdaq -1.20% and SOX semiconductor index -1.69%, may present headwinds today. The Kospi finished down 0.30% yesterday, while foreign investors were small net sellers of local equities (-$15.8mn).
• There is little in the way of domestic event risks today. The market will still be mindful of the authorities stepped up rhetoric around stabilizing markets. This could come into play if we see a spike above 1290 in USD/KRW.