Onshore Markets Closed, FX Reserves Data Still Out

1 month USD/KRW recovered post the Asia-close on Friday. Support is still evident sub 1240 and we ended above 1251 by the NY close. We are back above the 50-day MA (1249), and while onshore markets are closed today, FX reserves data for May is still on tap. Note the June 2 high in the month NDF was close to 1255.

• Tech equity sentiment ended last week softer. Both the SOX and MSCI IT indices ended the week down. China's Golden Dragon index also fell on Friday (-2.5%), but was still up for the week.
• Despite Korean equities pushing higher on Friday (+0.44%), we still had net equity outflows from offshore investors of $126.4mn. Net inflows for the week were still positive at $971.5mn. This was the best week for inflows since December 2021.
• North-South Korean tensions will also be eyed today. On Sunday North Korea test fired 8 short range ballistic missiles. South Korea and the US test fired 8 missiles in response.
• FX reserves print for May today. We fell to $449.30bn in April from $457.8bn in March, but dividend outflow pressures were strong that month. The USD also came down in NEER terms in May, compared to the surge through April, which should reduce some of the pressure from a valuation standpoint on reserves as well.