By Cheon Jong-woo
SEOUL, Aug 1 (Reuters) - South Korean exports in July grew faster than expected, easing concerns that the appetite for the country's manufactured goods may be cooling in line with worries about economic growth in China and the U.S.
The strong data on Sunday cemented views that South Korea's central bank may raise interest rates again this year. A rate hike and South Korea's expected $30 billion trade surplus will add pressure on the won to appreciate, economists said.
'There are no reasons for the Bank of Korea to delay a rate hike,',' said Kim Jae-eun, an economist at Hyundai Securities. 'Today's export data indicated that recent worries about a global double dip were groundless.'
South Korea's exports rose 29.6 percent in July over a year earlier, the Ministry of Knowledge Economy said. This beat the median forecasts of a 26.9 percent growth in a Reuters' survey of 10 analysts.
Daily average export value per working day fell to $1.69 billion in July from a revised $1.82 billion in June. But a ministry official said July's figure was still higher than the $1.64 billion so far this year.
South Korea's trade data are closely watched by investors as the country is the first major exporting economy in Asia to report monthly figures. China, the European Union and the United States bought 48 percent of South Korea's exports.
EXPORTS TO CHINA, US GROW FASTER
Exports to China, which takes about a quarter of exports, increased 36.8 percent in the first 20 days of July from a year ago versus a 25.3 percent rise in the first 20 days of June.
Exports to the European Union, which takes about 12 percent of South Korea's exports, jumped 56.9 percent during the same period. Exports to the U.S., which account for about 11 percent of the country's exports, increased 49.3 percent in the July
1
20 period, compared with 24.2 percent growth in June.
'The U.S. and Chinese economic growth is slowing but it is not strong enough to hit the Korean economy hard,' said Song Jae-hyeok, an economist at SK Securities.
U.S. economic growth slowed in the second quarter as companies invested heavily in equipment from abroad and the pace of consumer spending eased, raising concerns about the recovery in the rest of 2010.
South Korean semiconductor exports in July jumped 71 percent from a year earlier. Auto exports rose 50 percent. Exports of liquid crystal devices gained 30 percent.
Semiconductors account for about 8 percent of the country's exports and cars account for some 11 percent. South Korea is the home of the world's top memory chipmaker Samsung Electronics and the world's fifth-largest car maker Hyundai Motor Group.
South Korean imports grew 28.9 percent in July over a year earlier, below market forecasts of a 32.0 percent.
That helped Asia's fourth-largest economy produce a $5.67 billion trade surplus last month, compared with a revised $6.43 billion.
On Saturday, Economy Minister Choi Kyung-hwan said the country was on course to achieve a $30 billion trade surplus by the end of the year.
(Additional reporting by Seo Ji-won; Editing by Brett Cole and Jonathan Thatcher)
((jongwoo.cheon@thomsonreuters.com; +82 2 3704 5665; Reuters Messaging;jongwoo.cheon.reuters.com@reuters.net)) Keywords: KOREA ECONOMY/EXPORTS (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
SEOUL, Aug 1 (Reuters) - South Korean exports in July grew faster than expected, easing concerns that the appetite for the country's manufactured goods may be cooling in line with worries about economic growth in China and the U.S.
The strong data on Sunday cemented views that South Korea's central bank may raise interest rates again this year. A rate hike and South Korea's expected $30 billion trade surplus will add pressure on the won to appreciate, economists said.
'There are no reasons for the Bank of Korea to delay a rate hike,',' said Kim Jae-eun, an economist at Hyundai Securities. 'Today's export data indicated that recent worries about a global double dip were groundless.'
South Korea's exports rose 29.6 percent in July over a year earlier, the Ministry of Knowledge Economy said. This beat the median forecasts of a 26.9 percent growth in a Reuters' survey of 10 analysts.
Daily average export value per working day fell to $1.69 billion in July from a revised $1.82 billion in June. But a ministry official said July's figure was still higher than the $1.64 billion so far this year.
South Korea's trade data are closely watched by investors as the country is the first major exporting economy in Asia to report monthly figures. China, the European Union and the United States bought 48 percent of South Korea's exports.
EXPORTS TO CHINA, US GROW FASTER
Exports to China, which takes about a quarter of exports, increased 36.8 percent in the first 20 days of July from a year ago versus a 25.3 percent rise in the first 20 days of June.
Exports to the European Union, which takes about 12 percent of South Korea's exports, jumped 56.9 percent during the same period. Exports to the U.S., which account for about 11 percent of the country's exports, increased 49.3 percent in the July
1
20 period, compared with 24.2 percent growth in June.
'The U.S. and Chinese economic growth is slowing but it is not strong enough to hit the Korean economy hard,' said Song Jae-hyeok, an economist at SK Securities.
U.S. economic growth slowed in the second quarter as companies invested heavily in equipment from abroad and the pace of consumer spending eased, raising concerns about the recovery in the rest of 2010.
South Korean semiconductor exports in July jumped 71 percent from a year earlier. Auto exports rose 50 percent. Exports of liquid crystal devices gained 30 percent.
Semiconductors account for about 8 percent of the country's exports and cars account for some 11 percent. South Korea is the home of the world's top memory chipmaker Samsung Electronics and the world's fifth-largest car maker Hyundai Motor Group.
South Korean imports grew 28.9 percent in July over a year earlier, below market forecasts of a 32.0 percent.
That helped Asia's fourth-largest economy produce a $5.67 billion trade surplus last month, compared with a revised $6.43 billion.
On Saturday, Economy Minister Choi Kyung-hwan said the country was on course to achieve a $30 billion trade surplus by the end of the year.
(Additional reporting by Seo Ji-won; Editing by Brett Cole and Jonathan Thatcher)
((jongwoo.cheon@thomsonreuters.com; +82 2 3704 5665; Reuters Messaging;jongwoo.cheon.reuters.com@reuters.net)) Keywords: KOREA ECONOMY/EXPORTS (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.