January 24, 2023 23:01 GMT
Markets Return, Equity Impulse Positive In The Tech Space
South Korean markets return today from the LNY break. The 1-month NDF sits around the 1232/33 region, with the pair largely tracking recent ranges over the past few sessions. Note onshore spot close from last Friday was 1235.55. USD indices haven't shifted a great deal in trend terms since last Friday, although higher beta FX is stronger in the G10 space (AUD & NZD etc).
- The Kospi should push higher, given the generally firmer tone to global equities in recent sessions, particularly in the tech space. The chart below overlays the SOX index against the Kospi.
- The general trend in net equity flows has also been firmer for January to date, with over $3.2bn in net inflows.
- The data calendar just has monthly FX deposits for local residents out later.
- We are still waiting for Dec retail sales figures (due from today until the end of the month). Also note consumer confidence and Q4 GDP print tomorrow (not today as we stated late yesterday in our Asia FX wrap).
Fig 1: Kospi Versus SOX Index
Source: MNI - Market News/Bloomberg
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