January 26, 2023 23:56 GMT
Respects Recent Ranges, Business Surveys Suggest Headwinds To Growth
1 month USD/KRW respected recent ranges post the Asia closed, with highs above 1234 drawing selling interest. We finished the NY session around 1231, which is very close to yesterday's onshore spot close.
- The equity lead for the Kospi remains positive from the standpoint of Thursday tech related gains. The MSCI IT rose 1.46%, the SOX +1.63%. US tech related futures are weaker though in early trade today, with weakness in Intel, post and earnings update, weighing.
- The Kospi gained 1.65% yesterday, with offshore investors adding +$738.7mn.
- Earlier BoK business confidence measures for Feb printed, coming in softer than the prior outcomes. Manufacturing sentiment sits at 70, from 72, while non-manufacturing sentiment was 65, versus 68 prior.
- Both measures continue to suggest economic momentum remained under pressure in the early parts of Q1 this year. The chart below overlays South Korean GDP Y/Y against the manufacturing sentiment number.
- This comes after yesterday's Q4 GDP contraction, albeit which was in line with expectations.
Fig 1: South Korean GDP Versus Manufacturing Sentiment
Source: MNI - Market News/Bloomberg
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