Korea's exports growth surge to 3.9%

Manufacturing PMI also rose to 48.2.

According to DBS, the Bank of Korea is widely expected to keep the benchmark repo rate unchanged at 2.75% this week.

Here's more from DBS:

A modest recovery in economic activity is underway, alleviating the pressures facing the central bank to further cut rates.

Industrial production rose 0.6% MoM sa in October, aided by the improvement in export demand and the supply side recovery in the automobile sector. The mild uptrend in economic activity has been sustained in November.

Exports growth accelerated to 3.9% YoY in November from 1.1% in the previous month. Manufacturing PMI rose for the second consecutive month to 48.2.

Admittedly, the recovery remains modest and fragile at the current point, which requires the central bank to maintain policy accommodative in order to fostergrowth  and sustain the recovery.

Business sentiment is weak and investment spending has continued to contract, in light of the domestic uncertainties related to the upcoming elections and the external uncertainties surrounding the US fiscal cliff issues. GDP growth in the current quarter will likely remain subpar at the 3% level, a moderate rebound from 0.2% QoQ saar (revised) in 3Q.