Won Retreats

USD/KRW has run higher in Asia, last up 9.75 at 1096.75, just off session highs at 1098.65 but still comfortably at the highest levels since Dec. 28 and currently the best performer in Asia. The move is driven mainly by a stronger US dollar which has firmed against all G10 peers amid higher yields.

• South Korea's current account surplus narrowed on month in November mainly due to a decline in investment income, data earlier in the session showed. The current account surplus reached $8.97bn in November, narrowing from a surplus of $11.66bn the previous month.
• Exports, which account for around half of the South Korean economy, rose 4.1%, while imports fell 1.9%.
• The KOSPI is making new highs above the 3000 level, last up over 2% at 3093. The increase is attributed to healthy retail demand, as well as a 125% increase in demands for equities from foreign funds yesterday. In a note Citi point out that heavy retail flows in equities explain why there has not been any kind of large bank-type USD selling flows in the market despite the KOSPI rally.