South Korean Markets Return, First 10-Days Of September Trade Data Due

South Korea markets re-open after being shut since last Friday for holidays. The 1 month NDF has still traded in offshore markets, with a slight downside bias relative to the last onshore spot close. The NDF ended the NY session around 1374 this morning, versus a spot close of 1380.75 from last Thursday. This is line with some USD pullback over recent sessions, so onshore KRW spot may track a firmer tone initially today.

• On the data front, the first 10-days of trade data is out for September, while the BoK minutes from the August policy meeting are also due.
• The tone around exports will be watched closely, although it might be tricky to gauge too much from the first 10-days of the month. Chip/tech exports have been slowing, while export momentum to China has also slipped into negative territory.
• From an FX standpoint, the South Korea authorities are likely to take some comfort from recent USD weakness. This has helped pull USD/KRW away from a test of the 1400 level, as onshore officials stepped up their rhetoric around FX weakness in recent weeks.
• Onshore equities should open higher, given the positive tone to offshore markets over recent sessions. Global equities are up a little over 2.6% in the past 2 sessions.