USD/KRW Can't Sustain Sub 1380 Levels, As Tech Equities Slump

Spot USD/KRW finished up extended trade at 1380.2 on Wednesday. This was up from earlier lows around 1376, as USD/JPY slumped late in Asia Pac yesterday. The slump in global equities, led by the tech space, pulled USD/KRW higher. Note the 1 month NDF ended NY Wednesday trade at 1377.3, still a modest won gain of 0.26%.

• For spot USD/KRW we remain wedged between the 50-day EMA support level (near1 375.4), while the 20-day sits just above 1381 so close to current spot.
• Wednesday trade saw the SOX index slump by 6.8%, while the MSCI IT index fell 3.73%. For the won, this provided offset to the softer USD tone, which was led by the safe havens (yen rallied nearly 1.4%).
• Reports that the US is considering tighter restrictions to limit China access to advanced semiconductors weighed heavily on tech equity sentiment. This was already reflected in some of the Kospi's performance yesterday, which finished down 0.80%, while offshore investors sold -$200.2mn of local shares.
• Today the local data calendar is empty. Note the FinMin has called a housing market meeting in light of surging house prices (per BBG). This is also a BoK watchpoint in terms of easing cycle timing.
• Finally, Barclays has pushed out its view for when Korean bonds will be included in the WGBI to March of next year (as opposed to September of this year, see this BBG link.