Won Snaps 3 Day Winning Streak

The won rose yesterday, gaining for a third day after trade data showed the export recovery is still going strong. Shipments rose 10.6% vs a 1.2% rise in the prior period. Exports rose 8% after falling 1.5% previously.

The strong data was not enough to sustain the bid. USD/KRW is retreating from levels attained yesterday as the won weakens. The rate gapped higher at the open and rose to session highs of 1103.40 before slipping slightly to 1101.30

• The Kospi is likely to experience some upside pressure from Samsung today. Intel, the world's largest chipmaker, said some of its chips would be outsourced – rumours abound that Samsung is a beneficiary. Samsung depository receipts traded 2.8% higher in the US session.
• The index rose yesterday as foreigners posted net purchases to the tune of $228.3bn, but the bourse is under pressure today with contacts reporting early sales from foreign accounts.
• Elsewhere the WTO issued a ruling Thursday that said the US violated WTO tariff calculation rules on South Korean steel exports. Katherine Tai, the US trade representative nominee, has not yet been confirmed by the Senate.
• Finance Minister Hong Nam-ki is to hold meetings today with IT companies that made profits during the pandemic regarding voluntarily sharing those profits.