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Wednesday, 3 March 2010 - S.Korea Jan output data points to waning recovery
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    Read more with google mobile : S.Korea Jan output data points to waning recovery

    Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World S.Korea Jan output data points to waning recovery Reuters - 2 hours 35 minutes ago Send IM Story Print * Industrial output in Jan flat from Dec, missing f'casts * Analysts say data further dampens case for rate rise SEOUL, March 3 - South Korea's factory output in January missed market expectations, data showed on Wednesday, adding to worries that Asia's fourth-largest economy is losing steam. The data also cemented views that the central bank is unlikely to raise interest rates anytime soon amid persistent fears over Greece's debt crisis and further tightening measures from China. "Given the leading indicator trend, it's likely that the economy's momentum will peak in the first quarter and gradually slow throughout the year. With the slowing economy, China's tightening moves and concerns about U.S. housing prices, increasing interest rates isn't an option for the time being," said Lee Sung-kwon, chief economist at Shinhan Investment Corp. The government has repeatedly expressed its opposition to an early interest rate increase, fearing it could threaten the country's economic recovery and prompting investors to push back their expectations for a rate rise deeper into 2010. Industrial output in January was unchanged from December, data from Statistics Korea showed, missing market expectations for a 0.4 percent rise. The factory output index -- which measures manufacturing, mining and electricity output -- grew 36.9 percent in January from a year ago, also below an expected rise of 37.2 percent. The agency's composite leading indicator rose 11.3 percent in January over a year earlier, compared with a revised 11.6 percent annual rise in December. For a graphic on industrial output in South Korea and Japan, double-click: http://graphics.thomsonreuters.com/310/KR_INDPRD0310.gif Financial markets largely ignored the data, with front-end treasury bond futures <KTBc1> up 11 ticks to 110.75 as of 0553 GMT. The output figures came a day after data showing annual consumer inflation in February slowed more than expected from a 9-month high set in January. [ID:nTOE62105K] "Along with the consumer price index data yesterday (the figures) justify keeping a low interest rate policy through the second quarter due to a slowing economy," said June Park, an economist at Woori Investment & Securities. "The central bank is expected to raise rates in July at the earliest, on the condition that employment and consumption improve rapidly." The Bank of Korea next reviews its interest rate policy on March 11, the last monthly meeting for Governor Lee Seong-tae before he leaves office. In February, the central bank kept the 7-day repurchase agreement rate <KROCRT=ECI> on hold at a record low of 2.00 percent for a twelveth consecutive month. For more news on South Korea's economy, click [KR-MCE-RTRS-LEN] (Additional reporting by Rhee So-eui and Choo Mee-young; Editing by Jonathan Hopfner) Recommend Send IM Story Print Related Articles Bank bailout shows cracks in Indonesian government AFP - 1 hour 4 minutes ago US officials: New rules needed after Toyota woes AFP - 1 hour 5 minutes ago Kuwait money supply growth up 10.1 pct in Jan Reuters - 1 hour 8 minutes ago BRIEF-DNO says total Jan production at 8,533 bopd Reuters - 1 hour 10 minutes ago Taylor Wimpey posts FY loss, encouraging 2010 Reuters - 1 hour 10 minutes ago News Search Top Stories Eurozone, markets demand tough Greek austerity plan Chile quake moved Earth's axis, shortened days: scientist Greece risks 'bankruptcy' without radical action: PM Car makers brush off crisis in Geneva EU authorises GMO potatoes More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended Chile quake moved Earth's axis, shortened days: scientist NASA radar finds ice on moon's north pole Common weed-killer chemically castrates frogs: study Japan passes record $1 trillion budget Greece risks 'bankruptcy' without radical action: PM More Most Viewed » Florida killer whale to stay in park after deadly attack DNA reveals some mystery on King Tut, raises questions First footage of clouded leopard captured in Borneo Scientists recreate Big Bang heat of 4 tln degrees C More Most Recommended » Elsewhere on Yahoo! 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