AsianBondsOnline Newsletter (1 June 2015)

To read the full report, data and graphs go to http://www.asianbondsonline.adb.org/newsletters/abowdh20150601.pdf?src=newsletter&id=uWidK3KdmgXVUWes9IgIcqKp1miwxx

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News Highlights - Week of 25 - 29 May 2015

Real gross domestic product (GDP) growth in the Philippines stood at 5.2% year-on-year (y-o-y) in 1Q15, driven by household spending and domestic investment, and the services sector. On a seasonally adjusted basis, the Philippine economy grew 0.3% quarter-on-quarter (q-o-q) in 1Q15. In Singapore, real GDP expanded 2.6% y-o-y in 1Q15 on the back of output growth in the construction and services sectors. On a q-o-q and seasonally adjusted annualized basis, Singapore’s real GDP grew 3.2% in 1Q15.

*     Consumer price inflation in Japan decelerated to 0.6% y-o-y in April from 2.3% y-o-y in March. Singapore’s Consumer Price Index (CPI) fell 0.5% y-o-y in April after posting a 0.3% y-o-y decline in March. Viet Nam’s inflation rate fell marginally to 0.95% y-o-y in May from 0.99% y-o-y in April.   

*     Hong Kong, China’s trade deficit narrowed to HKD39.2 billion in April on 2.2% y-o-y growth in exports and a 2.9% y-o-y decline in imports. Japan’s trade deficit dropped to JPY53.4 billion in April due to an 8.0% y-o-y increase in exports and a 4.2% y-o-y decrease in imports. The Republic of Korea’s trade surplus reached US$6.3 billion in May as exports and imports fell 10.9% y-o-y and 15.3% y-o-y, respectively.

*     The Philippines posted a trade surplus of US$264 million in March as exports rose 2.1% y-o-y and imports fell 6.8% y-o-y.  Thailand’s trade surplus was US$1.7 billion in April as exports and imports fell 1.7% y-o-y and 9.1% y-o-y, respectively. Viet Nam recorded a trade deficit of US$3.0 billion in January–May amid export growth of 7.3% y-o-y and import growth of 15.8% y-o-y.

*     Thailand’s current account surplus narrowed to US$1.1 billion in April from US$2.2 billion in March due to a monthly drop in the merchandise trade surplus.   

*     The Purchasing Managers Index (PMI) for the manufacturing sector in the People’s Republic of China (PRC) stood at 50.2 in May, up slightly from April’s reading of 50.1.   

*     Japan’s industrial production slipped 0.1% y-o-y in April. Industrial production in the Republic of Korea fell 2.7% y-o-y in April. Singapore’s manufacturing production contracted 8.7% y-o-y in April. Thailand’s manufacturing production decreased 5.3% y-o-y in April. Viet Nam’s industrial production rose 9.2% y-o-y in January–May.

*     Local currency corporate debt issuance in the Republic of Korea fell to KRW10.1 trillion in April from KRW12.5 trillion in March. Meanwhile, the Republic of Korea’s external debt stood at US$418.9 billion at end-March, down from its end-December level of US$425.4 billion. 

*     Hong Kong, China priced a USD1 billion 5-year sukuk (Islamic bond) at 1.894% based on a Wakalah structure—in which two-thirds of the assets hinged on shariah-compliant commodities and the rest on certain units of an office building in Hong Kong, China—last week.  

*     Government bond yields fell last week for all tenors in the Republic of Korea and for most maturities in Thailand and Viet Nam. Yields rose for all tenors in Indonesia and for most maturities in the PRC and Malaysia. Yield movements were mixed in Hong Kong, China; Philippines; and Singapore. Yield spreads between 2- and 10-year tenors widened in the PRC, Malaysia, Singapore, and Viet Nam, while spreads narrowed in Hong Kong, China; Indonesia; the Republic of Korea; Philippines; and Thailand.

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