UPDATE 1-S.Korea May export growth beats f’cast

* Exports up 41.9 pct y/y vs f’cast for 38.2 pct rise

* Imports up 50.0 pct y/y vs f’cast 50.8 pct gain

* Average daily exports value up to record $1.84 bln
(Adds analysts, details, PMI, CPI)

SEOUL, June 1 (BestGrowthStock) – South Korean exports in May grew
stronger than expected and posted a record average daily value,
government data showed on Tuesday, reinforcing hopes for a
recovery in Asia’s fourth-largest economy and global trade.

The country’s overseas sales could moderate in the coming
months as the euro zone’s fiscal crisis impacts the global
economic recovery, although annual growth in shipments to the
European Union during the first 20 days of May more than doubled
from April, analysts said.

“Today’s data show no signs yet of any significant impact of
the euro-area debt crisis on European demand for Korean exports.
But the key word here is “yet” and there still must be some
caution about the near-term strength of external demand, not only
for Korea but for the rest of Asia,” said Brian Jackson, senior
emerging market strategist at Royal Bank of Canada.

South Korea is the first major exporting economy in the
region to report foreign trade data each month, providing a clue
on the latest strength of global demand for goods.

Euro zone economic sentiment defied market expectations of a
small gain and fell sharply in May, data showed on Monday,
indicating that the euro zone debt crisis has begun affecting the
real economy. [ID:nLDE64U12C]

South Korea’s exports in May rose 41.9 percent from a year
earlier, beating a forecast of a 38.2 percent growth in a Reuters

May’s average exports value per working day rose to a record
high of $1.84 billion in May from a revised $1.64 billion in
April, the Ministry of Knowledge Economy said in a statement.

Exports to the EU for the first 20 days of May rose 38.1
percent over the same period a year ago after gaining 15.2
percent in the April 1-20 period.

Sales to the United States jumped 62.3 percent for the May
1-20 period over a year earlier after a 28.5 percent annual gain
in the first 20 days of April.

Total imports gained 50.0 percent, slightly lower than a 50.8
percent rise forecast in the poll, helping the country post a
trade surplus of $4.37 billion.

Meanwhile South Korea’s manufacturing sector maintained
expansion in May but the pace hit a five-month low, a private
survey showed. [ID:nSUL000063]

The consumer price index rose a slower than expected 2.7
percent in May from a year earlier, but picked up from a 2.6
percent rise in April, seperate government data showed.

Investing Analysis

(Reporting by Cheon Jong-woo; Editing by Jonathan Hopfner)

UPDATE 1-S.Korea May export growth beats f’cast