MNI BRIEF: Japan Q1 GDP Revised Lower On Public Investment

MNI BRIEF: Business Inflation Expectations Solid - BOJ Tankan

MNI: China CFETS Yuan Index Up 0.07% In Week of Jun 28

MNI: PBOC Net Drains CNY48 Bln Via OMO Mon; Rates Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS MON

MNI: PBOC Sets Yuan Parity Lower At 7.1265 Mon; -0.32% Y/Y

CHINA JUNE CAIXIN MANUFACTURING PMI 51.8 VS 51.7 IN MAY

MNI: BOJ Tankan: Sentiment Rises, Solid Capex Plans, Backs BOJ

Tankan Survey Mixed, But Large Manufacturing Outlook Back To Late 2021 Highs

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Daily Average Exports Hold Close To Recent Highs, Trade Surplus Firms

SOUTH KOREA
EM BulletDataHomepagemarkets-real-timeData BulletBulletEmerging Market News

South Korean export growth was a touch above forecasts, up 5.1% y/y, versus 4.4% forecast, although still showed slowing sequential momentum from May (+11.5%). Still, the average daily export print came in at 12.4% y/y, versus 9% in May. Imports were weaker than forecast at -7.5%y/y (-4.7% projected and -2.0% prior). This aided a higher trade surplus, which printed just under $8bn for June ($5.7bn was forecast, prior $4.855bn). This is the highest surplus since Q3 2020.

  • The chart below overlays daily average export growth in y/y terms versus KRW/USD y/y changes. A modest divergence persists between the two series.
  • Domestic capital outflow pressures, uncertainty around Fed easing and export growth concentrated in the tech/chip space have been highlighted as factors driving this wedge.
  • Chips exports remained strong, +50% in y/y terms for June (recent cycle highs rest just above 60%). By country, exports to China were positive albeit just (+1.8% y/y). For the US it was +14.7% y/y.
  • The lower import bill helped boost the trade surplus position. The trend on the trade surplus remains firmly positive, although the Citi South Korean terms of trade proxy is off earlier YTD highs.

Fig 1: South Korea Export Growth & KRW/USD Y/Y Changes

Keep reading...Show less
217 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

South Korean export growth was a touch above forecasts, up 5.1% y/y, versus 4.4% forecast, although still showed slowing sequential momentum from May (+11.5%). Still, the average daily export print came in at 12.4% y/y, versus 9% in May. Imports were weaker than forecast at -7.5%y/y (-4.7% projected and -2.0% prior). This aided a higher trade surplus, which printed just under $8bn for June ($5.7bn was forecast, prior $4.855bn). This is the highest surplus since Q3 2020.

  • The chart below overlays daily average export growth in y/y terms versus KRW/USD y/y changes. A modest divergence persists between the two series.
  • Domestic capital outflow pressures, uncertainty around Fed easing and export growth concentrated in the tech/chip space have been highlighted as factors driving this wedge.
  • Chips exports remained strong, +50% in y/y terms for June (recent cycle highs rest just above 60%). By country, exports to China were positive albeit just (+1.8% y/y). For the US it was +14.7% y/y.
  • The lower import bill helped boost the trade surplus position. The trend on the trade surplus remains firmly positive, although the Citi South Korean terms of trade proxy is off earlier YTD highs.

Fig 1: South Korea Export Growth & KRW/USD Y/Y Changes

Keep reading...Show less