Robust Data

The won has strengthened from yesterday's close, but only modestly and is still significantly weaker than the close on Wednesday (around 1104, said to be significant resistance), the pair last trades at 1115.55 down 4.10.

• Data released earlier in the session showed industrial production was robust in December. Headline industrial production rose 3.4% Y/Y vs estimates of a 0.6% decline.
• Elsewhere, positive sentiment should be supported as South Korea's chip index posts new record high. According to Statistics Korea the index for chip production rose 19% Y/Y while the shipment index increased 43%. Semiconductors and electronics were a key driver of exports last year, with consumers adapting to the pandemic.
• Elsewhere, new coronavirus cases are back to beneath 500, mainly due to fewer tests amid cold weather despite a continued rise in clusters tied to religious facilities, which has put health authorities in more cautious mode about relaxing virus curbs. There were 469 new cases, compared to 497 yesterday. The government will announce if social distancing measures will be changed on Jan 31
• The IMF report yesterday still appears to be weighing, the Article IV consultation further monetary and fiscal stimulus would help speed up the recovery.