AsianBondsOnline Newsletter (27 January 2014)

To read the full report, data and graphs go to http://www.asianbondsonline.adb.org/newsletters/abowdh20140127.pdf?src=newsletter&id=uWidK3KdmgXVUWes9IgIcqKp1miwxx

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News Highlights - Week of 20 - 24 January 2014

Consumer prices in Hong Kong, China rose 4.3% year-on-year (y-o-y) in December, the same rate of increase as in November. Consumer price inflation in Hong Kong, China averaged 4.0% in 2013, which was in line with the government's forecast and down from 4.7% in 2012. In Malaysia, consumer price inflation accelerated to 3.2% y-o-y in December from 2.9% in the previous month, and from 1.2% in December 2012, due to rising food and transportation costs. In Singapore, consumer price inflation eased to 1.5% y-o-y in December from 2.6% in November. In Viet Nam, consumer price inflation slowed to 5.5% y-o-y in January from 6.0% in December. In the Republic of Korea, the Producer Price Index fell at a slower annual pace in December, decreasing 0.4% y-o-y following a 0.9% decline in November.

*     At its monetary policy meeting on 21-22 January, the Bank of Japan (BOJ) announced that it would maintain its monetary easing measures as it aims to achieve a 2.0% price stability target. The Bank of Thailand's Monetary Policy Committee decided on 22 January to keep its policy interest rate steady at 2.25%.

*     Real gross domestic product (GDP) in the Republic of Korea grew 0.9% quarter-on-quarter (q-o-q) and 3.9% y-o-y in 4Q13, according to advance estimates released by The Bank of Korea last week. Meanwhile, retail sales of most major distributors in the Republic of Korea were down in December compared with a year earlier.

*     Industrial production in Japan declined 0.1% month-on-month (m-o-m) in November. In Singapore, industrial production rose 6.2% y-o-y in December, boosted mainly by strong growth in the electronics sector.

*     In the Philippines, the trade deficit narrowed to US$944 million in November from US$1.6 billion in the same month in 2012, as y-o-y growth in exports exceeded that for imports. Total exports rose 18.9% to US$4.3 billion in November, while imports increased 0.5% to US$5.2 billion.

*     Asset-backed securities (ABS) issuance in the Republic of Korea reached KRW51.3 trillion in 2013, a 7.8% increase from 2012. It was the largest amount of ABS inssuance since 1999, according to a Financial Supervisory Service (FSS) report released last week.

*     China Shipping Group issued a US$500 million 5-year bond with a coupon of 4.25% that was priced to yield 4.352%. Dah Sing Bank issued a US$225 million Basel III-compliant Tier-2 bond with a maturity of 10 years at a yield of 5.437% and with a coupon of 5.25%.  Hong Kong and China Gas Corp. issued a US$300 million perpetual bond at a coupon rate of 4.75%. Indonesian-based Alam Sutera Realty, through its subsidiary Alam Synergy, priced a US$225 million 5-year bond at par to yield 9.0%.

*     Ping An Insurance (Group) Company of China issued a dual-tranche CNH bond last week consisting of a CNH850 million 3-year bond with a yield of 4.15% and a CNH750 million 5-year bond with a yield of 4.95%. Meanwhile, Universal United Leasing issued a CNH1 billion 3-year bond at a yield of 5.7%. 

*     Government bond yields fell last week for most tenors in the People's Republic of China (PRC), the Republic of Korea, Singapore and Viet Nam, and rose for most tenors in Indonesia, Malaysia, the Philippines and Thailand. Yield movements were mixed in Hong Kong, China. Yield spreads between 2- and 10- year maturities widened in the PRC, Indonesia, Malaysia, the Philippines and Viet Nam, while spreads narrowed in other emerging East Asian markets.