The Republic of Korea’s full-year gross domestic product (GDP) in 2016 expanded 2.8%, up from a preliminary estimate of 2.7%, and was at par with growth in 2015. Fourth quarter GDP rose 2.4% year-on year (y-o-y), slightly easing from the 2.6% y-o-y expansion in the t

To read the full report, data and graphs go to http://asianbondsonline.adb.org/newsletters/abowdh20170403.pdf?src=newsletter&id=uWidK3KdmgXVUWes9IgIcqKp1miwxx

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News Highlights - Week of 27 - 31 March 2017

The Republic of Korea’s full-year gross domestic product (GDP) in 2016 expanded 2.8%, up from a preliminary estimate of 2.7%, and was at par with growth in 2015. Fourth quarter GDP rose 2.4% year-on year (y-o-y), slightly easing from the 2.6% y-o-y expansion in the third quarter. Viet Nam’s GDP grew 5.1% y-o-y in the first quarter (Q1) of 2017 after rising 5.5% y-o-y in full-year 2016. The agricultural sector grew 2.0% y-o-y in Q1 2017, while the industry and construction sector grew 4.2% y-o-y in the same period. The services sector grew 6.5% y-o-y in Q1 2017, the highest growth rate among Viet Nam’s various sectors.   

*     Japan’s industrial production in February climbed the most since January 2014, rising 2.0% month-on-month after contracting 0.8% month-on-month in January. The Republic of Korea’s industrial production growth rose to 6.6% y-o-y in February after easing 1.4% y-o-y in January. In Viet Nam, industrial production growth eased to 5.5% y-o-y in March following a 15.2% y-o-y hike in February.

*     The People’s Republic of China’s (PRC) manufacturing Purchasing Managers Index rose to 51.8 in March from 51.6 in February, while the non-manufacturing PMI also rose to 55.1 in March from 54.2 in February.

*     Japan’s consumer price inflation rose to 0.3% y-o-y in February, easing from the 0.4% y-o-y gain in January. In Viet Nam, consumer price inflation climbed to 4.7% y-o-y in March, slowing from 5.0% y-o-y growth in February.

*     Voting unanimously on 29 March, the Monetary Policy Committee of the Bank of Thailand kept the benchmark interest rate unchanged for the 15th time in a row.

*     Hong Kong, China’s exports grew 18.2%    y-o-y in February after declining 1.2% y-o-y in January. Imports, on the other hand, grew 25.4% y-o-y in February, following a decline of 2.7% y-o-y in January. In Thailand, merchandise exports grew 0.7% y-o-y in February, easing from growth of 8.5% y-o-y in January, while merchandise imports rose 13.4% y-o-y in February, up from 11.3% y-o-y growth a month earlier. Exports from Viet Nam climbed 12.8% y-o-y in the first 3 months of the year to USD43.7 billion, while imports remained robust, climbing 22.4% y-o-y to USD45.6 billion.

*     Malaysia is considering liberalizing the rules on short-selling government bonds as they find ways to develop Malaysia’s domestic financial markets and restore interest in its debt among market participants.

*     In March, Fitch Ratings affirmed the Philippines’ investment grade credit rating of BBB– with a positive outlook.

*     Last week, the Government of Indonesia issued a USD3 billion dual-tranche global sukuk (Islamic bond). The Government of the Philippines plans to borrow PHP180 billion in the second quarter of 2017. In the PRC, Shandong Yuhuang Chemical and Evergrande issued USD-denominated bonds worth USD300 million and USD1.5 billion, respectively.

*     In the past week, local currency government bond yields were mostly down in Indonesia, Republic of Korea, Philippines, Singapore and Thailand, and were all down in Hong Kong, China; while bond yields in Malaysia and Viet Nam were mostly up with some unchanged. Bond yields were mixed in the People’s Republic of China. The 2-year versus 10-year yield spread narrowed for all emerging East Asian markets except Hong Kong, China; the Republic of Korea and Malaysia, which saw a slight widening. The 2-year versus 10-year yield spread in the Philippines continues to widen in the past 2 weeks.

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