Won Rallies On Broad EM FX Gains, BoK Minutes Out Today

1 month USD/KRW tracked lower post the Asia close on Monday. We finished the NY session just under 1324, a won gain of 0.80%. This puts back to Sep 5 lows, while lows at the start of the month were near 1310. Recent highs rest above 1335. Note onshore spot closed yesterday at 1331.35, so the early impetus in the pair should be to the downside.

• The won benefited from broad base USD losses post the Asia close, particularly in the EM space. The better China credit figures for August, were cited as one positive, while equity sentiment was better in US markets, although some tech indices lagged broader market trends, even amid better AI sentiment.
• The SOX nudged a touch higher, while the MSCI IT gained 0.40% (the Nasdaq rose 1.14% in Monday trade).
• To recap, the Kospi rose 0.36% on Monday, with offshore investors modest net sellers at -$28.7mn in terms of net outflows.
• Today we have the BoK minutes from the August rate decision, which are out at 4pm local time.
• The other focus point will be an expected meeting between North Korean leader Kim Jong Un and Russian President Putin, which may take place today. The North Korean leader left for Russia by train on Sunday.