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Manufacturing Sector Shows Signs Of Lockdown Stress


The won is slightly weaker in early trade on Monday, USD/KRW last up 1.35 at 1151.60.

  • On the coronavirus front South Korea reported 1,219 new cases in the past 24 hours, down mainly due to fewer tests over the weekend; the fourth wave of infections shows no signs of slowing down despite the adoption of the toughest virus curbs in the greater Seoul area. Health authorities are considering additional measures to contain the fourth wave of the pandemic as new cases continued to spring up across the country despite strict virus curbs. Over the weekend PM Kim said that the spread of the more transmissible delta variant is an obstacle to quarantine efforts and the government cannot help but consider stronger measures unless the spread is curbed.
  • Data earlier saw South Korea Markit manufacturing PMI fall to 53.0 in July from 53.9 in June. Commenting on the latest survey results, Usamah Bhatti, Economist at IHS Markit, said: "South Korean manufacturers continued to report a sustained improvement in operating conditions at the start of the second half of the year as production levels continued to expand. However, the latest Manufacturing PMI signalled the softest improvement in the health of the sector for seven months, amid a softer upturn in new orders. Anecdotal evidence suggested a resurgence in COVID-19 cases across Asia and ongoing supply chain disruption had led to demand easing in domestic and external markets"
  • Elsewhere data over the weekend showed South Korea's exports jumped 29.6% on-year in July to a record high, extending their gains to a ninth consecutive month as the global economy maintained a recovery.

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