Stocks rose firmly, supported by double-digit gains in equities and the ongoing depreciation of the yen.

Market Overview for Last Week (August 10–August 14) KRW/JPY High: 11.29 JPY Low: 11.16 JPY Close: 11.25 JPY Week-on-Week Change: +0.36% → Firmly higher The won strengthened, supported by double-digit gains in equities and the ongoing depreciation of the yen. Demand for the won increased as stock market rallies were well received, while the yen's decline further supported the KRW/JPY exchange rate. On the downside, however, upward momentum for the won remained limited. Growing concerns about the outlook for China’s economy heightened fears of slowing export growth, while rising unemployment rates and uncertainty surrounding the Middle East situation also weighed on sentiment.

Fisco Japan07:22

Markets rebounded, driven by the continued depreciation of the yen and improving economic indicators.

Weekly Overview: August 3–7. Won/JPY High: 11.219 yen, Low: 10.855 yen, Close: 11.21 yen, WoW: 2.54% ↑. The Won rebounded, driven by the weakening yen and improving economic indicators. The yen's depreciation pushed up the Won's exchange rate against the yen, while improved economic data also supported the currency. The S&P Global Manufacturing PMI for July rose to 53.1 from 52.1 in the previous month. On the downside, rising expectations of U.S. interest rate hikes acted as a headwind. Furthermore, uncertainty surrounding the situation in the Middle East also weighed on the currency.

Fisco JapanAug 9 11:38

An 'Overlooked' Market Event: Trilateral Intervention by the U.S., Japan, and South Korea—U.S. Treasury Steps In 'Rarely'! Is Bessent Quietly 'Rescuing the Market'?

The U.S. Treasury Department this week unusually intervened in the foreign exchange market, instructing the Federal Reserve Bank of New York to engage Wall Street banks to sell euros and buy yen, coordinating with Japan and South Korea in the largest-scale joint foreign exchange intervention in nearly three decades. Analysts believe the move goes beyond merely stabilizing exchange rates; its core objective is to prevent further weakening of Japanese and South Korean asset markets and to mitigate the risk of financial stress spilling over into the AI supply chain. By intervening in the yen through non-dollar transactions, the United States also aims to shift pressure away from the dollar and avoid imposing additional strain on the dollar system.

wallstreetcnAug 2 13:44

Market participants remain cautious, closely watching economic indicators and the yen exchange rate.

Weekly Outlook: August 3–7 — Korean won/yen pair may trade cautiously, with attention on economic indicators and yen movements. This week, the release of July’s S&P Global Manufacturing Purchasing Managers’ Index (PMI) and other data is likely to reinforce a cautious market mood. Additionally, movements in the yen warrant close monitoring; further yen strength could lead to continued declines in KRW/JPY. On the other hand, ongoing improvements in economic indicators may continue to be well received. Moreover, if equity markets rise, demand for the Korean won could increase.

Fisco JapanAug 2 06:13

A decline, driven by the rapid appreciation of the yen and a slump in stock prices, among other factors.

Weekly Overview (July 27–31): KRW/JPY high: ¥11.399, low: ¥10.913, closing: ¥10.932, down 2.65% from the previous week. The won declined sharply against the yen amid rapid yen appreciation and falling equity markets. The swift strengthening of the yen weighed heavily on the KRW/JPY exchange rate, while weaker stock prices also dampened demand for the won. Additionally, heightened uncertainty surrounding the Middle East situation exerted downward pressure on the won and other risk-sensitive currencies. On the other hand, expectations of China’s industrial support measures provided some underlying support. Furthermore, June retail sales and industrial production data, among other indicators, were revised upward.

Fisco JapanAug 2 06:11

Strong gains, or amid easing economic concerns, etc.

Outlook for the week of July 27–31: The Korean won and Japanese yen may trade on a firm note, supported by easing concerns over the economic outlook. An upside surprise in gross domestic product (GDP) data and other signs of improving sentiment could underpin the won. Additionally, market participants are likely to remain optimistic about China’s potential stimulus measures. On the other hand, further increases in U.S. interest rates could intensify selling pressure on currencies such as the won. Heightened tensions in the Middle East also warrant continued caution.

Fisco JapanJul 26 08:42