AsianBondsOnline Newsletter (3 May 2016)

To read the full report, data and graphs go to http://www.asianbondsonline.adb.org/newsletters/abowdh20160503.pdf?src=newsletter&id=uWidK3KdmgXVUWes9IgIcqKp1miwxx

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News Highlights - Week of 25 - 29 April 2016

Consumer prices in Japan slipped 0.1% year-on-year (y-o-y) in March, following an annual increase of 0.3% in February, amid y-o-y decreases in housing prices, utility charges, and transport and communication costs. Between February and March, Japan’s Consumer Price Index inched up 0.1%. In Singapore, consumer prices fell 1.0% y-o-y in March, the 17th consecutive month of y-o-y decline, largely due to falling private road transport costs.

*     At its monetary policy meeting on 28 April, the Bank of Japan (BOJ) announced that it would maintain its qualitative and quantitative monetary easing measures along with the negative policy rate.  

*     The Republic of Korea’s real gross domestic product growth decelerated to 2.7% y-o-y in the first quarter of 2016 from 3.1% y-o-y in the fourth quarter of 2015, according to advance estimates of the Bank of Korea.    

*     Hong Kong, China’s merchandise exports and imports fell 7.0% y-o-y and 5.8% y-o-y, respectively, in March. Philippine exports of goods decreased 4.5% y-o-y and merchandise imports rose 1.2% y-o-y in February. Viet Nam’s merchandise exports and imports climbed 5.6% y-o-y and 6.1% y-o-y, respectively, in April.  

*     Thailand’s current account surplus narrowed to USD5.0 billion in March from USD7.4 billion in February due mainly to a lower merchandise trade surplus.      

*     The Business Survey Index for manufacturing in the Republic of Korea rose to 71 in April from 68 in March, while for non-manufacturing it climbed to 70 in April from 68 in March.

*     Industrial production in Japan increased 3.6% month-on-month (m-o-m) in March, following a decline of 5.2% m-o-m in February. The Republic of Korea’s industrial production contracted 2.2% m-o-m and 1.5% y-o-y in March, a reversal from its expansion of 3.2% m-o-m and 2.2% y-o-y in February. In Singapore, manufacturing output fell 0.5% y-o-y in March after declining 3.8% y-o-y in February. In Viet Nam, industrial production growth climbed to 7.9% y-o-y in April from 6.2% y-o-y in March. 

*     Local currency corporate debt issuance in the Republic of Korea climbed 10.7% m-o-m to KRW7.1 trillion in March on the back of monthly increases in the issuance of asset-backed securities, bank debentures, and financial bonds.

*     Ayala Land, a property firm in the Philippines, issued PHP7 billion worth of 9.5-year bonds at a 4.75% fixed interest rate last week.

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

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