Korean exports climb 3.9% in November

Latest sign of regional export stabilization, says BBVA.

In its Asia Daily Flash report, BBVA reports that Korean exports for November (the first monthly release in the region) climbed by a better-than-expected 3.9% y/y (consensus: 1.6% y/y), up from a revised 1.1% y/y in October.

"The outturn is the latest regional export reading showing signs of stabilization," it said.

BBVA also notes that, concurrently, inflation fell to 1.6% y/y in November (consensus: 2.0% y/y) from 2.1% y/y the previous month on lower food and clothing prices.

"We expect a gradual pickup in Korea’s economy in 2013 (to 2.9% y/y GDP growth, from 2.3% y/y this year), and in the nearer-term we expect the central bank to stay on hold at its policy meeting on December 13, given the pickup in external demand. However, if economic conditions remain weak, we would not rule out a rate cut in January, following the Presidential elections on December 19," BBVA said.