South Korea GDP, central bank, currency, oil

GDP South Korea

South Korea’s economy grew 0.7% in the second quarter from the first quarter of 2022, according to estimates from the Bank of Korea.

That compares to a 0.4% growth analysts expected in a Reuters poll. The country’s GDP grew 0.6% in the January-March quarter.

“This morning’s printout actually gives the [Bank of Korea] more room to pursue their policy priority to tame inflation and inflation expectations before worrying about growth,” Kathleen Oh, an economist at Bank of America Securities, said Tuesday.

South Korea’s Kospi recovered from losses and rose 0.24%, while the Kosdaq fell 0.14%.

Elsewhere in the region, Australia’s S&P/ASX 200 was up 0.33%.

Japan’s Nikkei 225 was roughly flat, while the Topix index rose 0.15%.

MSCI’s widest index of Asia-Pacific stocks outside of Japan gained 0.38%.

CNBC Pro Stock Picks and Investment Trends:

The Bank of Japan released the minutes of its June meeting on Tuesday, after keeping its interest rates at ultra-low levels last week.

BOJ Policy Council members said the economy was on track to recover from the effects of Covid but still needs strong financial support amid the pressures of commodity price hikes.

“They also agreed that it was necessary to pay due attention to developments in the financial and foreign exchange markets and their impact on Japan’s economic activity and prices,” the minutes said.

The Japanese yen has weakened as the country’s monetary policy diverges from that of the Fed and much of the developed world.

The Japanese yen traded at 136.57 per dollar, stronger than last week’s levels.

In the US, the S&P 500 rose 0.1% overnight to 3,966.84 points. The Dow Jones Industrial Average rose 90.75 points, or 0.3%, to 31,990.04. The tech-heavy Nasdaq Composite fell 0.4% to 11,782.67.

Currencies and Oil

The US dollar index, which tracks the greenback against a basket of its counterparts, stood at 106,393, off this month’s highlights.

The Australian dollar stood at $0.6961.

The Aussie followed higher in line with higher commodity prices but is expected to trade in a tight range ahead of Wednesday’s inflation data report, Joseph Capurso, head of international economics at Commonwealth Bank of Australia, wrote in a note dated Tuesday.

Oil futures rose in Asia trading. US crude rose 1.42% to $98.07 a barrel, while Brent crude rose 1.46% to $106.68 a barrel.

Leave a Comment