Free Trial
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 KOREA
South Korea Feb trade figures were stronger than expected from an export growth standpoint, up 4.8%y/y versus 1.4% forecast. This was a down step from Jan's heady 18% pace, but the timing of the LNY this year compared to last year was a factor. Imports fell by -13.1%, compared with a -11.7% forecast. This saw the trade surplus rise to just under $4.3bn, versus $2bn forecast and $0.328bn in Jan.
- Adjusted for working day differences were up 12.5% in y/y terms, still indicating a healthy trend. The equivalent print for Jan was 5.7% for this metric. The chart below overlays this y/y measure against y/y changes in KRW/USD.
- The won looks a little too low from a momentum standpoint, but other factors are also at play, with Fed expectations and strong domestic outflows by local investors to overseas equities won negatives.
- In terms of the detail, chip exports surged 67%, with base effects helping, but this segment has turned the corner. Exports to the US were up 9% y/y, but fell 2.4% to China with the LNY likely impacting. Exports of cars fell 7.8%.
- The trade surplus is just short of recent highs and the trend has moved comfortably back into positive territory, in line with an improved terms of trade backdrop. Still, given some of the headwinds outlined above, this hasn't been as positive for KRW than otherwise might have been the case.
Fig 1: Daily Average South Korea Exports Y/Y & KRW Y/Y
Source: MNI - Market News/Bloomberg
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok