Seoul: South Korea's export growth lost some of its momentum in March while inflation unexpectedly slowed to a five-month low, reinforcing expectations interest rates will stay at a record low for some time.
Bond prices, stocks and the currency all rose as a series of data released on yesterday indicated Asia's fourth-largest economy was continuing to recover but not strong enough to prompt the central bank to tighten policy until the second half of the year.
Analysts said exports would probably suffer slower growth ahead as many developed economies are yet on a sustainable growth path while authorities in some others, notably China, are unwinding some of the stimulus put in place during the crisis.
Exports grew 35.1 per cent from a year earlier, above the market's 32.9 per cent growth forecast, but investment bank ING estimated monthly growth moderated to 4.4 per cent after seasonal adjustments from 10.9 per cent in February.
South Korea does not release seasonally adjusted export figures but said the average exports value per working day fell to $1.57 billion in March from a 17-month high of $1.62 billion in February, although it still stayed far above 2009 levels.
Annual consumer inflation in March slowed to 2.3 per cent, the lowest in five months, from 2.7 per cent in February. It was below the lower end of the market's expectations.
Seoul's main stock index rose 1.6 per cent, the won gained 0.4 per cent and the benchmark five-year treasury bond yield fell 5 basis points.
