Korea releases its advance estimate of third-quarter growth this week, while the United States, the euro zone and Japan all decide on policy rates.
The Bank of Korea will publish its advance estimate of third-quarter real gross domestic product growth on Oct. 27. Quarterly growth rebounded sharply to 1.8% in the first quarter of this year from minus 0.1% in the fourth quarter of last year, then slowed to 0.6% in the second quarter.
In its August economic outlook, the central bank projected third-quarter growth at 0.3% from the previous quarter. Stronger-than-expected semiconductor exports have led the market to anticipate a figure far above that estimate, with forecasts clustering in the high end of the zero range.
SK hynix's (000660.KS) third-quarter earnings report on Oct. 28 is another focus. Second-quarter revenue came in at 79 trillion won and operating profit at 60.5 trillion won. For the third quarter, the chipmaker is expected to post record results, with revenue of 98 trillion won and operating profit of 77 trillion won. Samsung Electronics (005930.KS) will report final third-quarter results on Oct. 29, after earlier announcing preliminary consolidated profit of 107.4 trillion won for the quarter.
The Ministry of Data and Statistics will release its industrial activity report for September on Oct. 30. In August, industrial output, retail sales and facility investment all declined, marking a triple contraction. With the government describing the weakness as temporary and the recovery as intact, attention centers on whether the indicators rebounded.
Abroad, the United States, the euro zone, Japan and Britain all set rates in what markets are calling a rate super week. In the United States, inflationary pressure is building, but a hold at 3.75% to 4% is seen as the likely outcome ahead of next month's midterm elections. How Federal Reserve Chair Kevin Warsh assesses the U.S. economy and prices after the decision is expected to shape the path for rates ahead. The European Central Bank, which raised rates twice in June and September, is also expected to stand pat this time, while the Bank of Japan is seen as likely to hold this month as it gauges the effect of its September increase.
The advance estimate of U.S. third-quarter GDP growth is another key indicator. The market expects growth of 3% from the previous quarter on an annualized basis, a sharp acceleration from 2.2% in the second quarter. Even as doubts mount over how long the artificial intelligence investment cycle can be sustained, the U.S. economy has so far shown solid growth this year.
