Korean industrial output dropped unexpectedly 0.3% year on year in November, much weaker than what market consensus has expected. On a seasonally adjusted mom basis, the industrial production declined 2.1%.
This performance was primarily led by electronics that lost some of its earlier gains. On mom basis, the production of semiconductors dropped 9.7% and production of mobile devices fell 20.2%.
The capacity usage rate stretched its drop and fell to 72.7% hitting the lowest since April 2009. Issue of inventory overhang also showed no improvement, with the inventory/shipment ratio staying close to 1.30x peak reached during global financial crisis.
"All in, we believe the broad trend of weak external demand but stronger domestic services activity remains unchanged. The softness in trade and production is likely to keep the BoK's monetary stance accommodative into 2016", says Barclays in a research note.


FxWirePro: Daily Commodity Tracker - 21st March, 2022
ECB Signals Possible Rate Hike as Iran Conflict Fuels Inflation Concerns
US Stocks Rebound as Iran Eases Military Operations; Tech Shares Lead Wall Street Recovery
BOJ Rate Hike Expectations Rise as Weak Yen and Strong U.S. Jobs Data Increase Pressure
Switzerland Population Cap Referendum Sparks Economic and Immigration Debate
South Korea Stocks Tumble as KOSPI Triggers Circuit Breaker Amid Chip Selloff and Middle East Tensions
Vietnam Prioritizes Fiscal Stimulus as Monetary Policy Space Narrows
Asian Currencies Stabilize as Strong U.S. Jobs Data Boosts Dollar and Fed Rate Hike Expectations
Indonesia Central Bank to Draft New Regulations After Expanded Economic Growth Mandate
ECB Warns Euro Zone Inflation Will Keep Rising Despite Strait of Hormuz Reopening
Sri Lanka Central Bank Surprises Markets With 100 Basis Point Rate Hike Amid Inflation and Currency Pressure




