Korea swings to first trade deficit in two years

LOS ANGELES (MarketWatch)
South Korea's January trade data showed the country's first drop in exports since 2009 and its first trade deficit since January 2010, according to data released Wednesdayç
Korean exports fell 6.6% in January compared to a year earlier, while imports rose 3.6%, sending the trade account to a deficit of $1.96 billion
In January 2011, South Korea posted a trade surplus of $2.9 billion
HSBC economist Ronald Man said the data, along with soft inflation numbers, meant the central bank would likely cut the policy interest rate by a quarter point by the end of March
"Sure, there may have been distortions from the Lunar New Year. However, this alone is difficult to justify the swing to an outright contraction," said Man