USD/KRW Back Sub 1300 On Tech Rebound

1 month USD/KRW tracked lower post the Asia close. We got to 1296, before ending the NY session just above 1297. Tech optimism and China stimulus hopes aided won sentiment. Note spot closed yesterday at 1299.95.

• We haven’t spent much time sub 1295 this week, so that may be the early focus point today. Beyond that is early July lows under 1290.
• To recap, Samsung's earning results yesterday buoyed optimism that the outlook for the tech sector may not be that dire. Whilst the company's profits were slightly weaker than expected, better than expected Q2 revenue (+21%) drove stronger broad tech sector gains.
• The SOX rose 4.5% overnight, while the MSCI IT index 2.16%. This followed strong gains for Samsung in South Korea and TSMC in Taiwan yesterday.
• Offshore investors only added $50.5mn of local Korean shares yesterday. Taiwan saw much more impressive net inflows, just over $630mn. Still, net inflows are positive for the week in Korea (+$152.2mn).
• China stimulus hopes also aided the won, note the China Golden Dragon index rebounded overnight by nearly 4%.
• Onshore today, there is no data of note. President Yoon will hold a meeting on the economy/inflation.
• Also note South Korea plans to exempt taxes on interest income and capital gains for offshore investors in local government bonds and monetary stabilization bonds. The move, expected to be announced later this month, is aimed helping Korea gain entry into various global government bond indices.