Won Moves Away From Cyclical Lows Amid Efforts To Stabilize Asset Markets

1 month USD/KRW finished just below 1424 in NY, well below highs from late yesterday just above 1446. Onshore spot ended yesterday at 1440.15, so expect some decent catch up to the downside in early trade today. The 1 month NDF found support ahead of 1418 on Tuesday, so this could be a level to watch on the downside. On the topside there are a number of previous highs above 1430, along with yesterday’s move above 1440.

• As we noted late yesterday, the South Korean authorities have stepped up their efforts to stabilize asset markets. Across the BoK and the government, 5 trillion won in bonds will be bought over the next two days. The stock market stabilization fund has also reportedly been activated.
• To recap, yesterday the Kospi finished down by 2.45%, after being down more than 3% at one stage. Offshore investors sold $192.1mn of local shares. Tech shares rallied in US markets, so this could provide a firmer base for local shares today.
• Earlier, manufacturing sentiment slipped back to 75, from 82 last month. Non-manufacturing sentiment eased back to 81, from 82 previously.
• US Vice President Harris will visit the DMZ today, she will also meet with South Korean President Yoon. North Korea test fired two short range ballistic missiles late yesterday.