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Export Growth Slumps, Although Not As Much As Forecast

KOREA

Korean trade figures were slightly better than expected. Export growth was +5.4% YoY, versus +3.8% expected. Import growth eased back to 19.4% YoY, which was below forecasts (22.0%).

  • Export growth has slowed sharply from the previous month though. We are now back to lows from late 2020, while exports to China also dipped into negative territory, -0.8% in YoY terms.
  • The overall result was likely influenced by fewer working days in June and the truckers strike from earlier in the month. Nevertheless, fears around weaker global demand will likely persist.
  • The trade deficit widened to -$2.47bn, versus -$1.71bn previously, but was well expectations of $-4.315bn. Recall, the deficit for the first 20 days of June was in excess of 7bn.
  • The June PMI has also printed, easing to 51.3 from 51.8 previously. This outperformed weakness seen elsewhere, particularly Taiwan (49.8 from 50).
  • Spot USD/KRW didn't react a great deal to the data. We opened sharply lower but rebounded back above 1291, in line with stronger USD sentiment against the majors.
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Korean trade figures were slightly better than expected. Export growth was +5.4% YoY, versus +3.8% expected. Import growth eased back to 19.4% YoY, which was below forecasts (22.0%).

  • Export growth has slowed sharply from the previous month though. We are now back to lows from late 2020, while exports to China also dipped into negative territory, -0.8% in YoY terms.
  • The overall result was likely influenced by fewer working days in June and the truckers strike from earlier in the month. Nevertheless, fears around weaker global demand will likely persist.
  • The trade deficit widened to -$2.47bn, versus -$1.71bn previously, but was well expectations of $-4.315bn. Recall, the deficit for the first 20 days of June was in excess of 7bn.
  • The June PMI has also printed, easing to 51.3 from 51.8 previously. This outperformed weakness seen elsewhere, particularly Taiwan (49.8 from 50).
  • Spot USD/KRW didn't react a great deal to the data. We opened sharply lower but rebounded back above 1291, in line with stronger USD sentiment against the majors.