Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
South Korea's export growth decelerated in September, with shipments to the United States losing momentum, bolstering expectations for a possible easing of monetary policy.
Exports increased by 7.5% year-over-year, slowing down from an 11.2% rise in August, according to the Korea Customs Service. The figure beat analysts' forecasts of 6.5% growth. However, it reflected a significant downturn, primarily driven by a slowdown in shipments to the U.S., which rose only 3.4% in September, a notable decrease from the 11% growth seen in August.
As Asia’s fourth-largest economy, South Korea’s monthly trade figures are seen as a key indicator of global trade trends, as they are released before other major exporting countries' data.
Speculation on a Possible Rate Cut
The report adds to speculation that the Bank of Korea (BOK) may cut its policy interest rate from the current 3.50% at its upcoming rate-setting meeting next Friday. The potential rate cut is motivated by concerns over economic growth, which are overshadowing inflation risks. A slowdown in export growth may offer further rationale for a rate cut, following declines in private consumption and construction investment in the second quarter.
“Given how sluggish domestic demand has been, this data supports an interest rate cut, but it will depend on how board members assess financial stability risks,” said Park Sang-Hyun, an economist at HI Investment & Securities. “It’s clear that South Korea is unlikely to see the significant U.S.-bound export boom of recent years.”
Trade Breakdown by Destination and Sector
When adjusted for working day differences, exports rose 12.9% year-over-year. However, growth in exports to China, Japan, and India moderated compared to August. Key sectors contributing to export growth included semiconductors, which surged 37.1% year-over-year to a record $13.6 billion in September. Car exports increased by 4.9%, while shipments of mobile communication devices jumped 19.0%.
Imports increased by 2.2%, falling short of analysts' 3.0% forecast, leading to a preliminary trade surplus of $6.66 billion, up from $3.77 billion in the previous month. The extended Chuseok holiday in September led to fewer working days, impacting the overall trade figures.
