Won Holds Gains After Data

The won has opened stronger, USD/KRW currently making fresh session lows at 1126.75, down 5.15.

Data released showed the trade surplus widened slightly less then expected, but printed a robust $4.175bn, exports rose 16.6%, in line with estimates, while imports rose 18.8% against expectations of a 19.1% rise. The jump in exports is the most since 2018, chips and automobiles continue to lead the export rally.

• South Korea Markit PMI Manufacturing was also released, the print was in line with the previous at 55.3. 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 in March, continuing the trend seen throughout the first quarter of 2021. The latest Manufacturing PMI signalled a further improvement in the health of the sector, driven by strong, albeit softer, growth in output and new orders. Firms also reported that new business inflows from external clients in particular increased further in March, and at the fastest pace since November 2020."
• The data indicates upside risks to inflation: "South Korean goods producers signalled that price pressures had continued to intensify throughout March as supply-chain disruption remained widespread. Average cost burdens increased at the second-sharpest pace on record as firms widely reported higher raw material costs. Manufacturers looked to partially pass the increased costs to clients, resulting in the steepest rise in output prices since the survey began in April 2004."