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Won Outperformance Persists On Equity Rebound/Strong Portfolio Inflows


The 1 month NDF got just below 1234 in NY trading before recovering into the close near 1239. The 1234 region coincides with lows in the pair from late May in 2022. Onshore spot ended yesterday's session at 1243.85, a gain of 2% against the USD, while the 1 month NDF rose 1.17%.

  • Won gains may have been tempered by a loss of momentum in the equity space through the NY session. Still, the SOX and MSCI IT index outperformed broader market moves. To recap, the Kospi rose 2.63% yesterday, with offshore investors adding $548.77mn to local stocks.
  • This brings net inflows for the past 5 sessions to an impressive $1.4bn, although over the past month, net inflow momentum is still below peaks we saw in 2022, see the chart below.
  • On the data front, the BoP goods balance remain in deficit in Nov, -$1.567bn, while the current account slipped back into deficit -$621.7mn (from $883.4mn). Given the dated nature of this data it is unlikely to have a large impact on market sentiment today.

Fig 1: South Korea Net Equity Inflow Momentum Starting Off 2023 Strongly

Source: MNI - Market News/Bloomberg

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