Markets Continue To Digest BoK

The won has weakened in early trade, USD/KRW up 2.55 at 1120.20, breaking out of yesterday's range. Some of the weakness is attributed to Samsung paying KRW 13tn in dividends, the majority of which are expected to be repatriated.

• Markets continues to digest yesterday's rate announcement. The BoK were positive on the economy, saying growth could be above estimates in the mid-3% range, but did reiterate an accommodative stance on policy would remain. South Korean President Moon spoke late yesterday and said the government could take more fiscal steps to support the economy.
• Yonhap news have reported that South Korean PM Chung Sye-kyun, a potential presidential candidate, is expected to offer his resignation with the announcement possibly coming today. Also in the reshuffle, Finance Minister Hong is likely to keep his position, he was expected to be replaced. Moon's approval rating has fallen to a record low of 30% according to a Gallup poll after a housing scandal and mayoral defeats in two key cities.
• Elsewhere, South Korea reported 673 daily new coronavirus cases in the past 24 hours, in the 600s for the second straight day as the country's virus fight is at a critical juncture of bracing for another wave of the pandemic. Friday's daily caseload was down from 698 on Thursday and 731 on Wednesday, which marked the highest since Jan. 7. Concerns have been rising over a further spike in new cases as the proportion of untraceable viruses stood at 28.2% over the past week, complicating efforts to contain the spread of the virus.