The won has come under renewed pressure.......>

KOREA: The won has come under renewed pressure today amid a series of weak data

releases. PMI came in at just 48.3 from 49.8; CPI dropped to 0.8% y/y from 1.3%;

the trade balance collapsed to its lowest level since 2014 on the back of a deep

contraction in imports; and the Chinese PMI miss added to the woes. 

- USDKRW trades up 0.6% on the day 1119.05 while KRWJPY has broken its range

lows to test the 21dma just below current levels at 9.729.

- 10 year bond futures broke above down trendline resistance to suggest a bull

flag breaking targeting 128. Short term rate markets largely shrugged off the

news however with the swap curve seeing some modest bull flattening.

- The Kospi has given back some gains but remains on a clear uptrend as the

equity-bond yield divergence continues.