Underperforms USD Sell-Off, As Broader North Asian FX Struggles

Spot USD/KRW finished up at 1386.4 in continued extended traded. We saw lows sub 1382 post the US data misses, but like elsewhere the USD found some support on this move. For Wednesday's session, the won was close to unchanged so underperforming the broader softness seen in USD indices (DXY off 0.30%). The 1 month NDF finished up near 1385.25, slightly weaker for the session in won terms.

• Offshore to the US yield pullback, came from yen and yuan underperformance. This likely curbed KRW gains to a degree. North East Asia FX shares correlations to a degree, which the won won't be immune from.
• In the equity space, we saw the SOX rise nearly 2%, the MSCI IT gain just over 1.5%, with tech indices outperforming broader market gains. Market sentiment being buoyed by the tick lower in US yields (the real US 10yr is back sub 2.10%, against recent highs of 2.16%).
• To recap, the Kospi rose just under 0.50% yesterday, but didn't close above the 2800 level. Offshore investors added $207mn to local shares.
• The local data calendar is empty today. For spot USD/KRW, recent highs at 1394.75 remain intact, on the downside the 20-day EMA is near 1381.40.