Won Sentiment Stabilizes Amid Higher Equities

1 month USD/KRW pulled back from recent highs post the Asia close on Monday. From above 1354, we closed the NY session just near 1346, a won gain of 0.37% (after losing 1% over Thursday/Friday last week). This keeps us below earlier October highs above 1361.60, while on the downside, note the 20-day EMA is near 1343. Onshore spot closed yesterday at 1353.65.

• On the data front, we have already had September trade prices. Import prices were up 2.9% m/m, from +4.2% in August. The y/y print was similar to August, coming in at -9.6%. It was a similar backdrop for export prices (1.7% m/m, -8.9% y/y).
• In the equity space, the lead for the Kospi is more positive today, as broader risk appetite improved in Monday trade. For tech plays, we had the SOX rise 1.43%, while the MSCI IT index gained 0.8%. Lack of escalation in the Israel/Hamas conflict was cited as a factor that aided risk sentiment.
• To recap, the Kospi fell 0.81% yesterday amid broad regional losses. Offshore investors remained sellers of local equities (-$244.5mn yesterday).