To read the full report, data and graphs go to http://www.asianbondsonline.adb.org/newsletters/abowdh20141110.pdf?src=newsletter&id=uWidK3KdmgXVUWes9IgIcqKp1miwxx
******************************************************************************
News Highlights - Week of 3 - 7 November 2014
Indonesia’s real gross domestic product (GDP) grew 5.0%
year-on-year (y-o-y) and 3.0% quarter-on-quarter (q-o-q) in 3Q14. The economic
expansion in 3Q14 was driven by private consumption, government spending, and
domestic investment on the expenditure side, and output growth in various sectors,
including manufacturing, on the production side. The y-o-y GDP growth rate in
3Q14 was lower compared to 2Q14’s growth rate of 5.1%, while 3Q14’s q-o-q
growth rate was up from 2.5% in 2Q14.
* Indonesia’s
consumer price inflation accelerated in October as the Consumer Price Index
(CPI) rose 4.8% y-o-y compared with September’s inflation of 4.5%. The Republic
of Korea’s consumer price inflation climbed to 1.2% y-o-y in October from 1.1%
in September. In the Philippines, consumer price inflation eased to 4.3% y-o-y
in October, from 4.4% in September, due to lower annual increases in prices of
food and non-alcoholic beverages (7.0%) brought about by an ample domestic food
supply. Meanwhile, the CPI in Thailand rose 1.5% y-o-y in October, a slower
annual rate of increase compared with the 1.8% gain in September. Food and
non-alcoholic beverage prices increased 3.2% y-o-y, while non-food and
alcoholic beverage prices inched up 0.5%. The People’s Republic of China’s
inflation for October was at 1.6% y-o-y, the same rate as in September.
* Bank Negara
Malaysia decided to maintain its overnight policy rate at 3.25% last week, and
Bank of Thailand kept the policy rate steady at 2.00%. The People’s Bank of
China (PBOC) announced that for the past 2 months it had injected a total of
CNY769.5 billion into the banking system through a new monetary policy tool
called the Medium-Term Lending Facility.
* Indonesia’s
trade deficit narrowed to US$270 million in September from US$312 million in
August. Exports grew 5.5% month-on-month (m-o-m) to US$15.3 billion, while
imports climbed 5.1% m-o-m to US$15.5 billion in September. In Malaysia,
exports rose 2.0% y-o-y to MYR64.5 billion in September.
* Fitch Ratings
(Fitch) upgraded its long-term and local currency issuer default ratings for
Viet Nam to BB– from B+, with a positive outlook. Fitch noted Viet Nam’s
current policies to be supportive in achieving macroeconomic stability.
* Retail sales
growth in Hong Kong, China accelerated to 4.8% y-o-y in September from 3.5% in
August.
* Last week,
Viet Nam priced a US$1 billion 10-year bond at 4.8%, or a 243 basis point
spread over comparable US Treasuries.
The offer is composed of a bond swap for its existing dollar bonds due
2016 (73% of the total offer) and a new issuance (27%). For the swap, the
government accepted US$436.4 million out of its US$750 million 2016 bonds at a
price of 107.
* The People’s
Republic of China (PRC) announced that it would sell government dim sum bonds
worth CNY12 billion in Hong Kong, China starting on 17 November, it will be
offered to retail and institutional investors.
* The yield
curve shifted downward in the PRC, following news of a liquidity injection in
banks and in Thailand, following moderating inflation. Yields fell mostly in Indonesia (due to the
lower trade deficit), the Republic of Korea, and Malaysia. Yields changes were mostly mixed in the
Philippines and rose in Hong Kong, China. The 2-year versus 10-year spread rose
in the PRC, the Republic of Korea, Thailand and Viet Nam.
******************************************************************************
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.