August Export Data Points To Slowing Global Demand

South Korea's first 20 day trade data for August suggests external demand lost momentum through the month. Exports were up 3.9% YoY (versus +14.5% in July), but on an average daily basis just 0.5% y/y. Chip exports fell -7.5% YoY, while exports to China fell to -11.2% YoY. US export momentum also slowed to just +0.8%. At face value this doesn't paint a great picture for Korea's external demand backdrop, or the global outlook, particularly from a China standpoint.

• Import growth remain stronger for Korea, running at +22.1% YoY for the first 20 days of the month, leaving the trade deficit at $10.22bn. This should improve for the full month, although clearly remains a meaningful headwind to won performance.