Forex trading store

By Cheon Jong-woo

SEOUL, Aug 1 (Reuters) – South Korean exports in July grew

faster than expected, easing concerns that the appetency for the

country’s manufactured goods may be cooling in calling with worries

about economic growth in China and the U.S.

The efficient data on Sunday cemented views that South Korea’s

central bank may erect 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 afore~.

‘There are no reasons for the Bank of Korea to let lie over a rate

hike,’,’ said Kim Jae-eun, an economist at Hyundai Securities.

‘Today’s carry out data indicated that recent worries about a

global double dip were unfounded.’

South Korea’s exports rose 29.6 percent in July to boot a year

earlier, the Ministry of Knowledge Economy said. This go a zigzag course the

median forecasts of a 26.9 percent growth in a Reuters’ take a view of

of 10 analysts.

Daily average export value per working day bring to the ground to $1.69

billion in July from a revised $1.82 billion in June. But a

administration official said July’s figure was still higher than the

$1.64 billion in such a manner far this year.

South Korea’s trade data are closely watched ~ dint of. investors as

the country is the first major exporting economy in Asia to

declaration 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, what one. takes about a quarter of exports,

increased 36.8 percent in the primitive 20 days of July from a year

ago versus a 25.3 percent go in the first 20 days of June.

Exports to the European Union, that takes about 12 percent

of South Korea’s exports, jumped 56.9 percent during the same

period. Exports to the U.S., which account towards about 11 percent

of the country’s exports, increased 49.3 percent in the July

1-20 circuit, compared with 24.2 percent growth in June.

‘The U.S. and Chinese household growth is slowing but it is

not strong enough to strike against the Korean economy hard,’ said Song

Jae-hyeok, an economist at SK Securities.

U.S. housekeeping growth slowed in the second quarter as

companies invested heavily in furniture from abroad and the pace

of consumer spending eased, raising concerns in various places 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

dulcet crystal devices gained 30 percent.

Semiconductors account for about 8 percent of the people’s

exports and cars account for some 11 percent. South Korea is

the home of the universe’s top memory chipmaker Samsung Electronics and the world’s fifth-largest car builder Hyundai

Motor Group.

South Korean imports grew 28.9 percent in July from hand to hand a year

earlier, below market forecasts of a 32.0 percent.

That helped Asia’s fourth-largest good housewifery 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 profession surplus by

the end of the year.

(Additional reporting by Seo Ji-won; Editing ~ means of Brett Cole and

Jonathan Thatcher)

((jongwoo.cheon@thomsonreuters.com; +82 2 3704 5665; Reuters

Messaging;jongwoo.cheon.reuters.com@reuters.get))

Keywords: KOREA ECONOMY/EXPORTS

(If you have a query or make notes on this story, send an email to news.feedback.asia@thomsonreuters.com)

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