South Korea's exports in October fell the most in 26 months while a trade deficit persisted for a seventh month, underscoring that Asia's fourth-largest economy is slowing and its currency is hovering near 13-year lows.

The government held a meeting of senior officials from more than 10 ministries and agencies hours after the data was released on Tuesday and pledged to "make every effort" to boost exports, while saying any near-term turnaround would be difficult.

Exports fell 5.7% from a year earlier to $52.48 billion in October, preliminary government data showed, the fastest drop since August 2020, and worse than a median 3.0% loss predicted in a Reuters survey.

Exports to China, its largest market, fell 15.7% in October from a year earlier as the world's second-largest economy is slowing from a mix of factors, including strict restrictions to stop the spread of COVID-19.

Local markets, however, showed a muted reaction to the sluggish data as investors focused on the U.S. Federal Reserve's policy meeting this week.

"There is little hope for a sharp turnaround soon as China's demand will remain weak and the (global) semiconductor industry is experiencing still growing inventory levels," said Chun Kyu-yeon, economist at Hana Securities.

A survey by S&P Global of purchasing managers at South Korean manufacturing companies also showed new export orders in October fell for an eighth consecutive month as the global economy is slowing.

Imports jumped 9.9% to $59.18 billion in October. As a result, the country posted a trade deficit of $6.70 billion, bigger than a shortfall of $3.78 billion in September and the seventh consecutive month of imports outweighing exports.

The deficit will further pressure the country's won currency , already among Asia's poorest performers this year, down 17% of its value from end-2021 against the dollar and hovering near its weakest in over 13 years set in late October.(Reuters)

Russian-installed officials in Ukraine's southern Kherson region said on Monday they were extending an evacuation zone from the Dnipro river, repeating claims rejected by Kyiv that Ukraine could be preparing to attack the Kakhovka dam and flood the region.

In a post on Telegram, Vladimir Saldo, the Russian-backed head of the region, which is partially occupied by Russian forces, said he was extending the area covered by an order for civilians to evacuate by an additional 15 km (9 miles) to include another seven settlements.

"Due to the possibility of the use of prohibited methods of war by the Ukrainian regime, as well as information that Kyiv is preparing a massive missile strike on the Kakhovka hydroelectric station, there is an immediate danger of the Kherson region being flooded, (resulting in) the mass destruction of civilian infrastructure and humanitarian catastrophe," Saldo said in a video message posted on Monday evening.

"Given the situation, I have decided to expand the evacuation zone by 15 kilometres from the Dnipro ... the decision will make it possible to create a layered defence in order to repel Ukrainian attacks and protect civilians."

Kyiv has denied it plans to attack the Kakhovka dam, a 30-metre (100 ft) high, 3.2-kilometre long facility and unleash a reservoir the size of the Great Salt Lake across southern Ukraine, flooding towns and villages, several of which Russian forces seized at the start of the war.

Ukraine said repeated Russian claims that Ukraine is preparing an attack on the dam, which regulates water supplies to the annexed Crimean peninsula and the Zaporizhzhia nuclear power plant, were a sign that Russia itself was considering staging an attack and blaming it on Kyiv and its Western supporters.

Russia has been evacuating tens of thousands of civilians from the western bank of the Dnipro river in recent weeks, under an advancing Ukrainian counteroffensive. Russian-installed officials are offering civilians one-time payments of 100,000 roubles ($1,628) to leave, and Moscow is providing housing in other regions of Russia, Saldo said.

President Vladimir Putin moved to annex the Kherson region last month after staging referendums in four Ukrainian regions that were slammed as sham and illegal by Kyiv and the West.

($1 = 61.43 roubles)(Reuters)

Japanese authorities cannot control yen levels with currency intervention but they have various tools to smooth out volatile moves driven by speculators, former top finance ministry bureaucrat Yasushi Kinoshita said on Monday.

Japan has been conducting yen-buying interventions since September to prevent a sharp slide in the currency driven by the gap between steadily tighter U.S. monetary policy and the Bank of Japan's continued ultra-loose policy.

"Currency intervention cannot and isn't intended to move the yen significantly up and down, or keep it at a certain level for a sustained period of time," said Kinoshita, seen as a candidate to join the Bank of Japan's leadership next year.

"Rather, it's aimed at preventing speculators from triggering volatile moves," said Kinoshita, who played a key role when Japan conducted yen-selling intervention in 2011.

"Japanese authorities are armed with the wisdom and various tools to fight speculators," he told Reuters in an interview.

Kinoshita said the central bank must eventually exit its ultra-loose policy but added that the BOJ must tread carefully and coordinate closely with the government in withdrawing stimulus.

"Everyone understands the BOJ must eventually head for the exit," Kinoshita said.

"It must proceed steadily but cautiously," he said, as withdrawing fiscal and monetary support simultaneously and too hastily would hurt the fragile economy.

Kinoshita, who retains close ties with incumbent policymakers, served as vice finance minister for about a year from 2013, when BOJ Governor Haruhiko Kuroda deployed his "bazooka" stimulus programme to eradicate deflation.

He is seen as one candidate to join the BOJ's leadership when Kuroda's term ends next April and those of his two deputies run out in March.

Some investors bet the BOJ will start to phase out its massive stimulus upon dovish governor Kuroda's departure, as prolonged ultra-low rates drive unwelcome yen falls that boost import costs.

"Given that what the BOJ is doing now is unprecedented, it won't be easy," Kinoshita said of the likelihood of a smooth lift-off from ultra-low rates.

The BOJ sets a negative short-term rate target and caps the 10-year bond yield around zero, remaining an outlier among a wave of central banks raising rates to combat soaring inflation.

Kinoshita was director-general of the international bureau when the finance ministry intervened in 2011 to stem a sharp yen rise that was hurting exports. He is currently chairman of the government-backed Development Bank of Japan.(Reuters)

Sri Lanka's key inflation rate eased to 66% in October after hitting 69.8% in September, the crisis-struck country's statistics department said on Monday.

The still extremely elevated Colombo Consumer Price Index (LKCCPI=ECI) (CCPI) reflected a 85.6% jump in food prices in October and a 56.3% climb in the non-food group, the Census and Statistics Department said in a statement.

However, the pace of food inflation slowed from a all-time high of 94.9% in September.

Sri Lanka has been struggling with soaring inflation for nearly a year, partly triggered by its worst financial crisis in seven decades and a ill-thought out ban on chemical fertiliser implemented last year, which has since been reversed.

"We are finally seeing a drop in inflation and expect this to continue over the next few months. However, inflation is only likely to hit single digits after the second quarter of next year," said Dimantha Mathew, head of research at First Capital Holdings.

The CCPI, released at the end of each month and closely watched by central bank policymakers, acts as a lead indicator for broader national prices and shows how inflation is evolving in Colombo, Sri Lanka's biggest city.

Sri Lanka's other main inflation measure, the National Consumer Price Index (NCPI), which captures broader retail price inflation, also touched a record 73.7% in September.

In an effort to tame prices and stabilise markets, the Central Bank of Sri Lanka (CBSL) has raised interest rates by 900 basis points so far this year. Its final policy announcement for the year will be in the last week of November.

Sustained high inflation would make it tricky for the government to introduce fresh indirect taxes in its upcoming budget for next year that will be presented to parliament on Nov. 14, analysts said.

Higher taxes are essential to boost public revenue to anchor fiscal consolidation and lock down a $2.9 billion bailout programme with the International Monetary Fund (IMF).(Reuters)

A family look around vegetables at a market in the rampant food inflation, amid Sri Lanka's economic crisis, in Colombo, Sri Lanka, July 30 , 2022. REUTERS/Kim Kyung-Hoon

Oct 31 (Reuters) - Sri Lanka's key inflation rate eased to 66% in October after hitting 69.8% in September, the crisis-struck country's statistics department said on Monday.

The still extremely elevated Colombo Consumer Price Index (LKCCPI=ECI) (CCPI) reflected a 85.6% jump in food prices in October and a 56.3% climb in the non-food group, the Census and Statistics Department said in a statement.

However, the pace of food inflation slowed from a all-time high of 94.9% in September.

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Sri Lanka has been struggling with soaring inflation for nearly a year, partly triggered by its worst financial crisis in seven decades and a ill-thought out ban on chemical fertiliser implemented last year, which has since been reversed.

"We are finally seeing a drop in inflation and expect this to continue over the next few months. However, inflation is only likely to hit single digits after the second quarter of next year," said Dimantha Mathew, head of research at First Capital Holdings.