The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.

0525 GMT - South Korea's weaker-than-expected 4Q GDP print prompts DBS's economics team to cut its growth forecast for this year. The print caps off another year of below-potential GDP growth in 2024, with domestic demand again featuring as a key drag, economist Ma Tieying says. DBS now sees 2025 growth at 1.7% versus 2.0% previously, and 2.0% in 2024. It expects demand to stay weak in 1Q. A potential recovery could start in 2Q as the effect of the political crisis and recent airplane crash subside, restoring consumer confidence. This assumes that the constitutional court upholds President Yoon's impeachment, leading to a new election, Ma adds. Export growth is likely to slow through the year, with the focus on the risks posed by U.S. tariffs. (fabiana.negrinochoa@wsj.com)

0517 GMT - Australia's 4Q CPI data due Wednesday is in focus as market observers try to interpret what the print will mean for the Reserve Bank of Australia ahead of its February meeting. Eyes will be on the trimmed mean measure, which market consensus has at 3.3% on year and 0.6% on quarter, HSBC Global Research says in a note. There is a risk the trimmed mean could print even lower as some of the effects of government subsidies on rent and electricity may seep in. However, recent strong jobs figures may make it harder to believe that underlying inflation will keep falling. The RBA has a complicated decision to make next month, as cutting too early in a fully employed economy could mean not achieving sustained 2.5% inflation, it says. (monica.gupta@wsj.com)

0516 GMT - Taiwan's economic outlook remains positive, with growth potentially exceeding expectations in 1Q, DBS economist Ma Tieying says. DBS maintains its 2025 GDP growth forecast at 3.0% after preliminary data indicated that 2024 growth averaged 4.3%. Investment is expected to remain robust this year, supported by ongoing capex from semiconductor companies like TSMC, which recently announced a 34% increase in its 2025 capex, Ma notes. "Export growth is expected to stay healthy, with cloud AI continuing to drive Taiwan's server supply chains," she adds. Reports suggest that the island's chip supply chain is seeing a surge in rush orders, likely due to U.S. tariff threats and inventory stockpiling. (fabiana.negrinochoa@wsj.com)

(END) Dow Jones Newswires

January 27, 2025 00:25 ET (05:25 GMT)

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