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Business Times
01-08-2025
- Automotive
- Business Times
South Korea exports rise at fastest in 7 months before higher US tariffs kick in
[SEOUL] South Korea's exports rose for the second straight month in July, beating market expectations on strong chip demand and shipments being moved forward ahead of higher US tariffs, which are expected to weigh in the second half of the year. Exports from Asia's fourth-largest economy, an early bellwether for global trade, rose 5.9 per cent from the same month last year to US$60.82 billion, trade data showed on Friday, higher than the 4.3 per cent increase in June and the strongest since December 2024. The figure beat a median 4.6 per cent rise forecast for July in a Reuters poll of economists, who also noted signs of front-loading shipments ahead of an Aug 1 deadline for higher US tariffs. President Donald Trump signed an executive order on Thursday imposing reciprocal tariffs ranging from 10 per cent to 41 per cent on US imports from dozens of countries and foreign locations. With South Korea, Trump announced a trade deal on Wednesday setting tariffs at 15 per cent, lower than a threatened 25 per cent but higher than the current 10 per cent, which officials, companies and economists cheered for reducing uncertainty over the trade environment. 'Despite the trade deal, demand is still expected to weaken from August as overall tariff rates will increase,' said Lee Jeong Hoon, an economist at Eugene Investment Securities. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'Demand for artificial intelligence, however, will continue to be strong, while that for automobiles is growing in non-US markets.' A separate business survey showed on Friday South Korea's factory activity contracted for the sixth straight month in July, as uncertainty over US tariffs weighed on output and orders. The trade-reliant economy grew at the fastest pace in more than a year in the second quarter, buoyed by rebounding consumer spending and a surge in exports driven by demand for technology. Exports of semiconductors jumped 39.3 per cent in July, the biggest annual increase since October 2024, while cars rose by a five-month high of 8.8 per cent on robust demand in non-US markets such as Europe. Ship exports surged 107.6 per cent. By destination, shipments to the US rose 1.4 per cent, after three straight months of declines, as growing technology demand offset the impact of Trump's tariffs on steel and auto parts. Exports to China fell 3.0 per cent, while those to the European Union rose 8.7 per cent. Imports rose 0.7 per cent in July to US$54.21 billion, compared with a gain of 4.3 per cent in June and 2.0 per cent expected by economists. The monthly trade balance stood at a surplus of US$6.61 billion, narrower than the previous month's US$9.08 billion, which was the biggest since September 2018. REUTERS
Reuters
01-08-2025
- Business
- Reuters
South Korea exports rise at fastest in 7 months before higher US tariffs kick in
SEOUL, Aug 1 (Reuters) - South Korea's exports rose for the second straight month in July, beating market expectations on strong chip demand and shipments being moved forward ahead of higher U.S. tariffs, which are expected to weigh in the second half of the year. Exports from Asia's fourth-largest economy, an early bellwether for global trade, rose 5.9% from the same month last year to $60.82 billion, trade data showed on Friday, higher than the 4.3% increase in June and the strongest since December 2024. The figure beat a median 4.6% rise forecast for July in a Reuters poll of economists, who also noted signs of front-loading shipments ahead of an August 1 deadline for higher U.S. tariffs. President Donald Trump signed an executive order on Thursday imposing reciprocal tariffs ranging from 10% to 41% on U.S. imports from dozens of countries and foreign locations. With South Korea, Trump announced a trade deal on Wednesday setting tariffs at 15%, lower than a threatened 25% but higher than the current 10%, which officials, companies and economists cheered for reducing uncertainty over the trade environment. "Despite the trade deal, demand is still expected to weaken from August as overall tariff rates will increase," said Lee Jeong-hoon, an economist at Eugene Investment Securities. "Demand for artificial intelligence, however, will continue to be strong, while that for automobiles is growing in non-U.S. markets." A separate business survey showed on Friday South Korea's factory activity contracted for the sixth straight month in July, as uncertainty over U.S. tariffs weighed on output and orders. The trade-reliant economy grew at the fastest pace in more than a year in the second quarter, buoyed by rebounding consumer spending and a surge in exports driven by demand for technology. Exports of semiconductors jumped 39.3% in July, the biggest annual increase since October 2024, while cars rose by a five-month high of 8.8% on robust demand in non-U.S. markets such as Europe. Ship exports surged 107.6%. By destination, shipments to the U.S. rose 1.4%, after three straight months of declines, as growing technology demand offset the impact of Trump's tariffs on steel and auto parts. Exports to China fell 3.0%, while those to the European Union rose 8.7%. Imports rose 0.7% in July to $54.21 billion, compared with a gain of 4.3% in June and 2.0% expected by economists. The monthly trade balance stood at a surplus of $6.61 billion, narrower than the previous month's $9.08 billion, which was the biggest since September 2018.
Business Recorder
20-05-2025
- Business
- Business Recorder
Asia FX mixed against soft dollar
BENGALURU: Most emerging Asia stock markets tumbled on Monday, led by Taiwan, Malaysia and South Korea, as underwhelming economic data from China and a downgrade of United States' credit rating dented sentiment. In Southeast Asia, stocks in Kuala Lumpur fell 1.1% after a mixed bag of economic data from Asia's largest economy, China, pressurised risk appetite. China has been Malaysia's biggest trade and investment partner for nearly two decades. Trade-reliant South Korea's benchmark KOSPI fell as much as 1.3%. The country's financial authorities said they were watching domestic and international markets closely, warning that the US downgrade could exacerbate market volatility. Moody's downgraded the credit rating of the United States on Friday by a notch, citing ballooning debt and interest that it deemed higher than similarly rated sovereigns. 'The downgrade gave investors an excuse to book profit from the stock market near its previous peak,' said Huh Jae-hwan, an analyst at Eugene Investment Securities, referring to the benchmark index in Seoul. The won was 0.9% higher against the dollar, which dropped 0.4%. Taiwan also came under pressure, with its shares falling 1.5%. Taiwan Semiconductor Manufacturing Co, the world's largest chipmaker, fell 1.4%, reflecting broader concerns over the prospects of the global technology sector. Taiwan, a key player in the global semiconductor supply chain, has been increasingly seen by Washington as crucial in its efforts to shift global supply chains away from China, especially for technology and chip companies. The strategic importance of Taiwanese chip firms was underscored during the pandemic, when supply constraints disrupted the global electronics industry. Other equity markets in Asia were downbeat, with shares in Thailand, Philippines and Singapore lower by 0.6%, 0.2% and 0.5%, respectively. Currencies were mixed against a softer US dollar. The Thai baht led gains among its regional peers, adding 0.6% after first quarter economic growth beat market expectations. Elsewhere, the Malaysian ringgit extended losses after the domestic central bank trimmed annual economic growth forecasts. The currency was last trading unchanged. The Indonesian rupiah was steady ahead of a Bank Indonesia meeting later in the week, prefaced by growing expectations of a rate cut. 'While a rate cut could support equities, it may cap any near-term strength in the currency, especially with US yields still elevated and the Federal Reserve in no rush to ease,' said Mohit Mirpuri, an equity fund manager with SGMC Capital.
The Star
19-05-2025
- Business
- The Star
Emerging Markets - Asia forex mixed against soft dollar as Taiwan equities lead losses
SOUTH-EAST ASIA (Reuters): Most emerging Asia stock markets tumbled on Monday, led by Taiwan, Malaysia and South Korea, as underwhelming economic data from China and a downgrade of United States' credit rating dented sentiment. In South-East Asia, stocks in Kuala Lumpur fell 1.1% after a mixed bag of economic data from Asia's largest economy, China, pressurised risk appetite. China has been Malaysia's biggest trade and investment partner for nearly two decades. Trade-reliant South Korea's benchmark KOSPI fell as much as 1.3%. The country's financial authorities said they were watching domestic and international markets closely, warning that the US downgrade could exacerbate market volatility. Moody's downgraded the credit rating of the United States on Friday by a notch, citing ballooning debt and interest that it deemed higher than similarly rated sovereigns. "The downgrade gave investors an excuse to book profit from the stock market near its previous peak," said Huh Jae-hwan, an analyst at Eugene Investment Securities, referring to the benchmark index in Seoul. The won was 0.9% higher against the dollar, which dropped 0.4%. Taiwan also came under pressure, with its shares falling 1.5%. Taiwan Semiconductor Manufacturing Co, the world's largest chipmaker, fell 1.4%, reflecting broader concerns over the prospects of the global technology sector. Taiwan, a key player in the global semiconductor supply chain, has been increasingly seen by Washington as crucial in its efforts to shift global supply chains away from China, especially for technology and chip companies. The strategic importance of Taiwanese chip firms was underscored during the pandemic, when supply constraints disrupted the global electronics industry. Other equity markets in Asia were downbeat, with shares in Thailand, Philippines and Singapore lower by 0.6%, 0.2% and 0.5%, respectively. Currencies were mixed against a softer US dollar. The Thai baht led gains among its regional peers, adding 0.6% after first quarter economic growth beat market expectations. Elsewhere, the Malaysian ringgit extended losses after the domestic central bank trimmed annual economic growth forecasts. The currency was last trading unchanged. The Indonesian rupiah was steady ahead of a Bank Indonesia meeting later in the week, prefaced by growing expectations of a rate cut. "While a rate cut could support equities, it may cap any near-term strength in the currency, especially with U.S. yields still elevated and the Federal Reserve in no rush to ease," said Mohit Mirpuri, an equity fund manager with SGMC Capital. - Reuters
