Risk Backdrop Continues To Support The Won

1 month USD/KRW dipped below 1265 post the Asian close, hitting the lowest levels seen since early May. We finished around 1267, but the risk backdrop remains in favor of further won gains. Note that spot closed just under 1275 yesterday.

• US and EU equities were higher on Tuesday, with the tech space generally leading the way. The Nasdaq gained 2.76%, while the SOX surged just over 5%.
• China tech stocks in the US also rose by more than 5% on better earnings and hopes of a more supportive regulatory backdrop going forward. Continued zero covid community cases in Shanghai is also helping China related sentiment, with spillover to the rest of the region.
• The Kospi did rise yesterday, adding close to +1% but offshore investors were still modest sellers of local equities. -$43.5mn, bringing net outflows to -$59.3mn since the start of the week. The pace of outflows is more moderate compared to earlier in May though.
• The domestic data calendar remains quiet, with PPI data out tomorrow.