Week Ahead for FX, Bonds: U.S. Inflation Data -2-

South Korea

Investors will closely watch Bank of Korea Gov. Shin Hyun-song's speech at the central bank's anniversary slated for Thursday. After the central bank held rates steady and made upward revisions to its growth and inflation forecasts, South Korean stocks have rallied, the won has weakened and oil-driven inflation has kept a bias towards higher yields.

"With Gov. Shin signalling that chip-sector profits may offset the usual terms-of-trade income drag, there is room for the central bank to become more hawkish," HSBC analysts said, adding that investors are pricing a firm path higher, and the key factor to watch is whether equity wealth effects broaden into more persistent demand-side inflation.

Markets are likely to parse Shin's wording for further clues as to when the central bank will deliver its next move, especially after the economy delivered a stronger-than-expected inflation print in May.

Barclays moved up its rate-hike forecasts to July from August, noting the above-consensus headline inflation reading of 3.1% "will be enough for the BOK to deliver more swift action" on interest rates, citing stronger pass-through from higher oil prices into core inflation.

Taiwan

Taiwan is scheduled to report merchandise trade data on Tuesday. The island's export growth remained strong in recent months, thanks to global demand for chips and electronics. It is also navigating the impact of Middle East tensions from elevated energy prices.

ING expects continued strong growth in May, with exports rising 33.5% year-on-year and imports rising 37%, resulting in a trade surplus of $15.5 billion. "Strong export orders from previous months suggest external demand remains robust amid the AI boom," it says.

Any references to days are in local times.

Write to Jessica Fleetham at jessica.fleetham@wsj.com and Jihye Lee at jihye.lee@wsj.com

(END) Dow Jones Newswires

June 05, 2026 11:26 ET (15:26 GMT)