USD/KRW followed Chinese FX throughout...>

KOREAN WON: USD/KRW followed Chinese FX throughout Monday's Asia-Pacific session

and registered the highest close since January 2017 at 1187.55. The currency's

sensitivity to global trade conditions was worsened by the impasse reached by

China and the US. According to reports over the weekend, China and US trade

teams reached deadlock after disagreeing on how and when the US would remove

import tariffs on Chinese goods in the event of a deal.

-Domestic equities also underperformed, with South Korea's KOSPI underperforming

Japanese stocks to shed 1.4% at the close, the lowest since mid-January.

-As has been the case in recent weeks, volatility in spot markets has led to

much better-than-average options volumes and that's remained the case Monday.

Close to $2bln in USD/KRW contracts have changed hands so far today, with the

majority being calls: over $2 in calls were traded Monday for every $1 in puts.

-Following disappointing GDP data in mid-April, 1185 USD/KRW call strikes were

particularly popular and those trades are now in-the-money. Popular strikes

Monday included 1,205 and 1,210.