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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 Korean trade figures surprised on the downside for November. Export growth came in at -14% y/y, against -11.2% expected and -5.7% in October. This is the weakest print since mid 2020. Import growth was firmer than expected at 2.7% y/y (+0.5% forecast, +9.9% prior). This saw the trade deficit widen to just over -$7.0bn, slightly wider than last month.
- Similar trends remained in play from last month, with weakness in semiconductor exports, -29.8% y/y, compared to -17.4% y/y last month. Exports to China fell to -25.5% y/y, versus -15.7% in October.
- The trade deficit improvement has also stalled, but we remain better than August wides (-$9.4bn).
- The data has not impacted won sentiment at this stage. China re-opening optimism is offsetting, along with a weaker USD theme post Powell's speech overnight. USD/KRW is sub 1300, the 1 month near 1295 currently.
- Also, the won has generally led the weaker export trend this year, see the chart below. Today's weaker export print brings the two series more into line with each other.
Fig 1: KRW/USD Y/Y Change Versus South Korea Export Growth
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.
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