Kospi rises as much as 0.4%, while won little changed
BOK policy meeting, GDP data this week matter more, they say
North Korea launched an intercontinental ballistic missile near Japan, but investors and analysts were unfazed by the latest provocation.
Stephen Innes, head of trading for Asia-Pacific:
- The KRW reaction is very telling as USDKRW NDF barely moved, he said in a note
- “Geopolitically risk desensitized investors view little chance of escalation and are using these opportunities to add risk”
- On the broader won rally, he says the move has more to do with Thursday’s BOK rate decision. “Traders will be on the edge of their seat awaiting the BOK rate hike and more specifically what tone the governor will take. There’s a high chance for dovish interest hike. Crunch time for Asia FX traders,” he wrote
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