Won’s rebound, CBC to hold fire, China Shock 2.0

The Korean won hit a two-year high this week, helped by profit repatriation by major tech firms and foreign investors scaling back their selling of Korean equities. We think it will make further gains over the next couple of years. The Taiwan dollar has also regained some ground recently which, alongside August’s softer-than-expected inflation data, is likely to prompt the central bank to keep interest rates on hold next week. Finally, this week marked the launch of our new series of analysis that examines the global impact of China’s recent export surge, or what is being labelled as China Shock 2.0. All of the analysis can be found on a dedicated page on our website.