EM ASIA CREDIT: JSW Steel extends closing of Mozambique coal asset

• CNY reference rate was fixed at 7.1899, only slightly higher than Friday’s 7.1893. The error with the estimate was down slightly.
• USDCNH is off its intraday high of 7.3023 to be flat on the day at 7.300.
• China’s yuan fixing was estimated at 7.2967, according to Bloomberg, with the range 7.2933 to 7.3032.

In Tokyo morning trade, JGB futures are weaker but off session lows, -7 compared to settlement levels.

• The Jibun Bank/S&P Global Manufacturing PMI Index for December rose to 49.6 from 49 in November.
• Cash US tsys are slightly richer, with a steepening bias, in today’s Asia-Pac session after Friday’s heavy session.
• Cash JGBs are little changed across benchmarks. The benchmark 10-year yield is 0.4bp lower at 1.121% versus the cycle high of 1.1330% set earlier today.
• Swap rates are little changed apart from the 30-year (-3bps). Swap spreads are mixed.

USDKRW finished Friday little changed at 1470.90 following a low of 1466.55 but has started today volatile rising to 1475.45 and then declining to 1468.55 and is currently around 1470, as political instability continues. The fatal crash of a Korean plane weighed on the won earlier but coordinated verbal support for markets has left USDKRW little changed and equities higher.

• Acting President Han Duck-soo was impeached on Friday and there were reports over the weekend that former president Yoon Suk Yeol ordered the use of guns to subdue politicians when he announced martial law.
• Han Duck-soo was impeached for apparently delaying the removal of Yoon Suk Yeol following his failed attempt to implement martial law early in December. The finance minister, Choi Sang-mok has become the third president this month.
• The government, Bank of Korea and regulators stated that markets will be monitored and action will be taken to ensure stability if needed.
• November IP was softer than expected falling 0.7% m/m to be up only 0.1% y/y after being unchanged and +6.3% y/y in October.
• Acting president Choi has called for a “strict” investigation” into Sunday’s fatal Jeju plane crash. Yonhap news reported today that another Jeju flight had to turn around due to a landing-equipment problem. 
• Korean equities are rallying with the KOSPI up 0.8% and the KOSDAQ +1.4%.