Equity Sentiment & USD/JPY In Focus

1 month USD/KRW was relatively quiet post the Asia close. Dips below 1255 were supported, but we didn't get much beyond 1257, which is where we closed. Note spot closed yesterday at 1253.80.

• The early focus could be with tech equity weakness. The SOX index fell 2.40%, while the MSCI IT index slipped close to 1%. This followed Intel's warning on the demand outlook for semiconductors.
• The China Golden Dragon index continued its recovery, up a further 5.7%, but this has done little for Korean shares of late.
• Yesterday, the Kospi finished around flat. Offshore investors sold a further $77mn in local shares, bringing week to date outflows to $322mn.
• Further yen weakness could also be a catalyst for the won today, although KRW traded resiliently to further USD/JPY strength overnight.
• There is no domestic data today. The South Korea Finance Minister stated the government's economic policy direction will be outlined next week. The government will make an all-out effort to stabilize prices.
• Large manufacturer Hyundai also announced it was being partially disrupted by a truckers' strike, which is taking place across 16 different locations in the country. The first 10 days of export data for June will be watched for any impact on trade activity.