Why all eyes are on Korea's monthly export data

May export growth went up to 3.2%.

According to BBVA, Korea’s monthly export data are closely watched as a bellwether for the region, given the economy’s leading position in the global supply chain and as the first monthly export print in Asia. 

Export growth ticked up to 3.2% y/y in May (consensus: -0.9% y/y) from 0.4% y/y in April, due to shipments of smart phones and resilient demand from the US and China.

Here's more from BBVA:

The data follows a better-than-expected outturn for April industrial (0.8% m/m, s.a.) released last Thursday. Nevertheless, growth in Korea continues to face headwinds from the fallout of the depreciation of the yen and high level of consumer indebtedness.

The authorities have responded with fiscal stimulus, and the BOK cut interest rates last month to 2.50%. We see room for further rate cuts if needed, after May CPI inflation came out at a lower-than-expected 1.0%y/y.