USD/KRW opened with a gap higher but.....>

KOREAN WON: USD/KRW opened with a gap higher but has eased off since and filled

it. Above-forecast industrial output readings out of South Korea have helped

alleviate some pressure coming from the coronavirus situation. The pair last

trades at KRW1,186.00, +0.90 fig. on the day.

- On a monthly basis, South Korea's industrial production rose the most since

Nov 2016. The reading of +3.5% M/M overshot market expectations of a more modest

+0.7%. A simultaneous drop in semi-conductor inventories revived hopes for a

recovery in the key sector of local economy.

- According to the data from Japanese FinMin, shipments of hydrogen fluoride to

South Korea increased >800-fold M/M in December as Tokyo relaxed some of the

previously imposed export controls on the material.

- Bulls look at KRW1,190.00 as their initial target, as the round figure has

proved resilient today. A break here would bring the Dec 4 high of KRW1,195.90

into view. Bears look for a pullback under the 200-DMA at KRW1,179.05.

- South Korean trade balance will be published on Saturday. Worth watching

Chinese off'l PMI data, due shortly, in case of any spill-over effect.