Samsung Electronics' third-quarter earnings take center stage this week, while the Ministry of Economy and Finance and the Ministry of Planning and Budget face parliamentary audits.
Samsung Electronics (005930.KS) will release preliminary third-quarter results on the 8th. If the company beats market expectations, following U.S. chipmaker Micron Technology's results released on the 1st, optimism about the semiconductor cycle could fuel gains in Korean stocks.
In the second quarter, Samsung Electronics posted revenue of 171.4 trillion won ($120.8 billion) and operating profit of 89.4 trillion won ($63.1 billion). Analysts expect third-quarter revenue to top 200 trillion won and operating profit to exceed 110 trillion won. Should those estimates materialize, both would mark quarterly records, and cumulative operating profit through the third quarter could surpass 250 trillion won.
The Ministry of Economy and Finance will be audited by the National Assembly's Strategy and Finance Committee on the 6th, followed by the Ministry of Planning and Budget on the 8th. Key issues are expected to include the government's recently announced overhaul of property taxes, next year's budget bill and plans for using excess tax revenue, and a proposal to establish a future response fund.
The Bank of Korea will release foreign exchange reserves as of end-September on the 6th and the August balance of payments on the 8th. The current account surplus reached $42.08 billion in July, the second-largest monthly figure on record. The cumulative surplus through July stood at $233.09 billion, four times the $59.82 billion recorded in the same period last year. Attention will focus on whether strong semiconductor exports kept the surplus near record levels in August.
In the United States, the Federal Reserve will release minutes from its September meeting of the Federal Open Market Committee. The Fed raised its benchmark rate by 0.25 percentage point in a unanimous vote in September, beginning its first tightening cycle in three years and two months. The minutes will offer insight into how policymakers view the prospect of further rate increases.
