00:06foreign institutional flows into korea are being pulled by three forces at once this week
00:13u.s. inflation looks like it's cooling but the headline number is hiding something else
00:19korea's central bank could hike rates again thursday its second move in two months
00:24and gold just had its best month in years as the dollar weakens
00:29it's monday august 24th here's why global investors are paying attention to korea today
00:37u.s headline cpi growth slowed from a peak of 4.2 percent in may to 3.4 percent in
00:44july
00:44and the fed's preferred pce gauge eased from 4.1 percent to 3.7 percent over the same period
00:52but the current inflation wasn't triggered by ordinary demand shifts
00:57it stems from tariffs and middle east driven oil supply shocks that monetary policy can't fix
01:03directly meanwhile korea's own rate decision this thursday and a fresh rally in gold are adding
01:11new variables for anyone allocating capital to korean assets here's what the numbers show
01:17brent crude traded above 100 a barrel through may dropped after a june u.s iran ceasefire memorandum
01:25then rebounded back above 90 a barrel once that agreement broke down last month
01:31u.s 10-year and 30-year treasury yields climbed to their highest levels since the global financial
01:37crisis even as the treasury intervened in the yen market for the first time in 28 years
01:4413 of 20 korean economists and bond strategists surveyed expect the bank of korea to raise its
01:50base rate by 0.25 percentage points this thursday following last month's hike from 2.5 percent to 2.75
01:58percent gold futures closed at 4 680.60 dollars an ounce on august 21st up 17.25 percent in a
02:10single
02:10month after touching a yearly low of three thousand nine hundred ninety two point one zero dollars as
02:17the dollar index fell to 98.80 its weakest since mid-may sk hynix's buybacks pushed other corporations
02:27share of cosby trading volume from 0.34 percent to 3.77 percent in two days filling the gap left
02:35by foreign
02:36investors who have net sold an average of 1.03 trillion won or about 740 million dollars a day
02:44this year so what does this mean for global investors watching korea earlier we said u.s inflation looks
02:52like it's cooling but the headline number is hiding something else here's what that actually means for
02:57you with the slowdown driven by supply shocks rather than weaker demand the case for imminent fed easing
03:04remains thin keeping dollar funding costs elevated for emerging market allocations including korea
03:11a second straight bank of korea hike this thursday would narrow not widen the policy gap with the fed
03:18which could ease some pressure on the wan even as bond yields stay volatile and with sk hynix's buybacks
03:26cushioning the cosby against foreign selling near-term index resilience may be more about corporate
03:31balance sheets than about renewed foreign appetite for korean equities that's today's ai prism global
03:38investors this episode was produced with ai assistance based on seoul economic daily reporting
03:45and reviewed by a human editor ai prism is a wan ifra award-winning series we'll be back tomorrow
03:53you've been listening to ai prism from seoul economic daily
03:57you've been listening to ai prays for korea
03:58you
03:58you
04:00you
04:00you
