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News Highlights - Week of 11 - 15 November 2013
Bank Indonesia's (BI) Board of Governors decided to raise
BI's benchmark interest rate by 25 basis points (bps) to 7.5% at its meeting on
12 November. BI also raised the lending facility rate and deposit facility rate
by 25 bps each to 7.50% and 5.75%, respectively. In making its decisions, BI
took note of the persistently large current account deficit amid concerns of
widespread global uncertainty. Meanwhile, The Bank of Korea's Monetary Policy
Committee decided on 14 November to maintain the base rate at 2.50%.
* Hong Kong,
China's GDP grew 2.9% year-on-year (y-o-y) in 3Q13. Real gross domestic product (GDP) growth in
Japan increased 0.5% quarter-on-quarter (q-o-q) in 3Q13.
* Malaysia's
economy recorded a y-o-y growth rate of 5% in 3Q13- the fastest pace in three
quarters-from a revised 4.4% in 2Q13 driven by recovery of exports and strong
domestic demand. Industrial production growth in Malaysia eased to 1.0% y-o-y
in September due to a fall in mining
output. On a seasonally adjusted basis, Singapore's retail sales increased 0.5%
month-on-month (m-o-m) in September.
* Indonesia's
current account deficit narrowed to US$8.4 billion (equivalent to 3.8% of GDP)
in 3Q13. Japan posted a current account surplus of JPY587 billion in September,
up from the JPY162 billion posted in August. Malaysia's current account surplus
widened to MYR9.8 billion in 3Q13 from MYR2.6 billion in the previous
quarter. In the Philippines, merchandise
exports rose 4.9% y-o-y in September to US$5 billion. Personal remittances from
overseas Filipinos rose 6.6% y-o-y January-September to reach US$18 billion,
* In the
Republic of Korea, domestic banks' capital adequacy ratio under the Bank for
International Settlements Basel II standards climbed to 14.25% at-end September
from 13.87% at end-June.
* On 12
November, the National Assembly of Vietnam (NA) approved the 2014 economic
indicators for the 2014 budget, with a state budget deficit of VND224 trillion
or 5.3% of GDP. The largest portion of the state budget was allocated for
development investments and debt payments.
* China
Development Bank (CDB) last week said it plans to issue an exchange-listed
bond. The bond listing, if approved,
will be the first exchange-listed bond from a bank. The China Banking Regulatory Commission and
China Securities Regulatory Commission
announced on 8 November that
banks will be allowed to issue bonds on the exchange. However, they said that
the rules are meant to allow banks to issue bonds to boost regulatory capital.
* The Industrial
and Commercial Bank of China issued a CNH1.3 billion bond last week with a 3-year
maturity and a coupon of 3.35%, as well as a CNH700 million bond with a 5-year
maturity and a coupon of 3.75%.
Singapore's United Overseas Bank priced a SGD500 million Tier 1 perpetual issue
to yield 4.75% last week. Vietnam Asset Management Company issued zero interest
rate 5-year special bonds for Saigon-Hanoi Commercial Joint Stock Bank with a total value of VND30.4 billion.
* Government
bond yields rose last week for all tenors in Indonesia, and for most tenors in
the PRC, the Republic of Korea, Malaysia, the Philippines, Singapore, Thailand
and Viet Nam. Yield movements were mixed in Hong Kong, China. Yield spreads
between 2- and 10- year maturities narrowed in Indonesia, the Philippines and
Viet Nam, while spreads widened in most other emerging East Asian markets.
