1 month USD/KRW fell by 1.15% yesterday, amid broad USD weakness and stronger equity sentiment. We closed near the session lows for the pair in NY, 1415.5. The September 22 high at 1413/14 is nearby, beyond that is the 20 day MA at 1405.74. Note onshore spot ended yesterday at 1426.45.
- The equity lead for the Kospi is once again positive (SOX + 4.46%, MSCI IT +3.59%). This comes after yesterday's +2.50% gain, while offshore investors added $196.1mn to local shares.
- CPI figures for September, which just printed, presented a mixed bag. Headline pressures were a touch softer than expected at 0.3% m/m (versus 0.4% forecast), while the y/y number came in at 5.6%, against 5.7% expected.
- Core inflation edged up to 4.5% y/y, slightly stronger than forecast. This measure is back around recent highs. 7 out of 12 sub indices recorded either stronger y/y momentum or the same y/y pace compared to August.
- Tentative signs of moderating inflation pressures will be welcome by the authorities, although the sticky core trend could still prompt a firm response from the BoK next week (i.e. 50bps).