USDKRW has recovered most of its losses to....>

KOREA: USDKRW has recovered most of its losses to trade down just 0.2% on the

day at 1118.3 even as equities cling to their 0.5% gains.

- Rate markets continue to head lower with a 0.5bps move down in 2-year swaps,

although yesterday's lows are holding across the curve. Lower oil prices

continue to undermine inflation expectations, keeping downside pressure on

rates. 

- Correlations across Korean equity and rate markets continue to break down,

with end of the positive correlation resulting from the dovish tilt by the US

Fed last week. This has seen global rates shift lower providing some support to

equities.