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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
KRW
1 month USD/KRW finished the NY session just under 1424. Resistance still appears ahead of the 1430 level, but more broadly the pair remains wedged between the 1410/1430 levels for now. Note onshore spot finished yesterday at 1423.95.
- The lead for the Kospi is once again a negative one (MSCI IT -2.28% overnight), although the local bourse has outperformed global tech indices this past week. To recap the Kospi was down 0.33% yesterday.
- Offshore investors continue to add to local shares though, with a further +$148.2mn in net inflows yesterday. Week to date flows are just over $1bn, while for the past month are just under $2.8bn, see the first chart below.
- The better flow backdrop has been one factor that has helped stabilized won sentiment (KRW/USD 1 month changes is the other line on the chart), particularly amidst higher USD/CNH levels and a still hawkish Fed backdrop.
Fig 1: South Korean Net Equity Flows & KRW/USD Trends
Source: MNI - Market News/Bloomberg
- It will be interesting to see if this type of flow momentum can be maintained and improve further. Towards the end of August, we ran out of momentum just above $3bn on a rolling monthly sum basis for net equity inflows.
- South Korean net inflows do continue to outperform Taiwan though, see the second chart below. This gap has been evident for much of this year but has re-widened in recent weeks.
Fig 2: South Korean and Taiwan Equity Flow Trends (USDmn)
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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