The first part of the session has seen the won unwind its outperformance from the previous session. Spot USD/KRW is near 1440, +1.20% for the session. This is outpacing other USD/Asia pairs (next worst is IDR, down 0.82% against the USD), while the G10 space, NZD/USD is off by 1%.
- Outside of continued broad based USD gains, weaker equity sentiment is a factor, see the chart below. The Kospi is off by 2.7% and is now back to early July 2020 lows.
- Apple's earlier news, around ditching plans to boost Iphone production, is weighing on broader tech sentiment within the region.
- Earlier, retail sales for August were positive, +15.4% y/y versus +9.7% in July. This didn't impact sentiment though.
- Tomorrow business sentiment for manufacturing and non-manufacturing is due.
Fig 1: USD/KRW & Local Equity Trends
Source: MNI - Market News/Bloomberg