USDKRW has broken below its 55-dma............>

KOREA: USDKRW has broken below its 55-dma following the news that Trump is

asking his cabinet to draft a potential trade deal with China, which followed a

constructive phone call between the two leaders. The pair trades at daily lows

of 1121.50, the lowest level since Oct 2.

- Korean stocks are up ~3% on the day, with earnings beats from Daelim

Industries and GS Retail providing additional support, while a decline oil

prices has supported petrochemical makers. The Kospi's daily percentage gain is

the biggest since 2016. 

- Rate markets have extended their gains as the recovery in stocks raises the

prospect of a BOK hike later this month. The 2-year interest rate swap is up

4.6bps to 1.9180%, back above its 55-dma having reversed all of Monday's large

decline and more.