The October South Korean trade figures are out.
Exports surged 7.3% year-over-year, which was much stronger than the 2.3% increase expected.
Korean trade data is extremely sensitive to the economic activity in developed and emerging Asia. It usually comes before the first trading session of the month in Asia, which makes it the first of the world’s major economic indicators to be released.
“Both export and imports should jump significantly from the previous month in October,” said Societe Generale’s Suktae Oh ahead of the report.
“This may be considered as evidence of stronger economic activity at a first sight,” warned Oh. “But we prefer to be more cautious on interpretation: it is more likely to represent a return to a normal level after the temporary weakness caused by the summer season and Chuseok holidays.”
Still, it’s worth noting the actual numbers exceeded Oh’s estimates.