Yen Edges Higher as Weak US Data Dampens Fed Rate Hike Expectations 
Gold Prices Retreat From Two-Month High as Softer Inflation Eases Fed Rate Hike Bets 
Oil Prices Steady as Strait of Hormuz Traffic Slows Amid US-Iran Conflict 
Asian Stocks Rally as Cooling US Inflation Boosts Fed Rate Outlook 
US Dollar Slips as Weak Retail Sales Reduce Fed Rate Hike Bets 
China Automakers Accelerate Global Expansion as Domestic Car Sales Slump 
Gold Prices Rise as Weak US Data and Hormuz Risks Boost Safe-Haven Demand 
Morgan Stanley Sees Fed Holding Rates as U.S. Inflation Cools 
US Stock Futures Mixed as Fed Rate Hike Bets Fade, AI Deals in Focus 
KOSPI Eyes Best Weekly Gain Since June as Samsung, SK Hynix Rally 
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The KRW will likely advance further amid resumed equity inflows while remaining susceptible to positioning, external liquidity conditions and hovering geopolitical uncertainty. The currency pair is expected to trade towards 1,110 and then 1,100 after breaking below 1,120 on Tuesday.
The KOSPI share index has been consolidating around the 2,300 level despite equity outflows recorded on Friday and Monday. However, foreign investors turned net buyers of local shares on Tuesday as external liquidity remains ample at current stage as suggested by steadily increasing balance sheets of the Bank of Japan (BoJ) and the European Central Bank (ECB).
"On the other hand, we need pay attention to the positioning. Year-to-date, foreign funds have poured USD 6.89 billion of funds into Korea’s equity markets. We also stay cautious on developments in global liquidity conditions as the KRW could decline versus the USD if investors start to worry about external liquidity shrinking," Scotiabank commented in its latest research report.
