Week in review
- U.S. new home sales rose 4.1% m/m
- Japan Tokyo CPI rose 1.8% y/y
- Taiwan export orders slowed to 4.6% y/y
Week ahead
- U.S. and eurozone 3Q GDP growth rate
- U.S. JOLTS report, nonfarm payrolls and unemployment rate
- U.K. budget
Thought of the week
Korea’s advance 3Q GDP grew modestly at 0.1% quarter-on-quarter. Although an improvement from the previous quarter, it was nevertheless a downside surprise against the 0.5% consensus expectation. Contributions from each underlying component were mixed, but the contraction in goods exports was most notable after having seen consecutive expansions over the past year and a half. While this partly reflects the cooling growth trend observed in tech exports from Korea, back-loading of export orders towards 4Q could have been another reason. Amidst the current earning season, mixed 3Q sales results from the tech sector thus far similarly reflect softer external demand. That said, select names have continued to benefit from their strong industry positioning with increased margins under the ongoing semi upcycle. Medium-term support from the Bank of Korea’s likely gradual interest rate cuts and longer-term themes, such as the Corporate Value-up Program, are also tailwinds to the domestic equity market.
Contribution to real GDP growth
Quarter-on-quarter, seasonally adjusted
Market data