* Hong Kong, China’s exports rose 7.1% y-o-y in April from 16.9% y-o-y in March. Imports grew 7.3% y-o-y in April versus 13.0% y-o-y in March. Hong Kong, China reported a trade deficit of HKD34.1 billion. Japan’s exports rose 7.5% y-o-y to JPY6.3 trillion in

To read the full report, data and graphs go to http://asianbondsonline.adb.org/newsletters/abowdh20170529.pdf?src=newsletter&id=uWidK3KdmgXVUWes9IgIcqKp1miwxx

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News Highlights - Week of 22 - 26 May 2017

Singapore’s gross domestic product expanded 2.7% year-on-year (y-o-y) in the first quarter of 2017, easing from 2.9% y-o-y growth in the fourth quarter of 2016. Growth mainly came from the manufacturing sector and service-producing industries. Singapore’s Ministry of Trade and Industry noted that the improving global growth outlook will likely continue to support Singapore’s trade-driven economy in 2017. Singapore’s gross domestic product for 2017 is forecast to grow between 1% and 3%, possibly surpassing the 2.0% growth reached in 2016.

*     Singapore’s manufacturing output expanded 6.7% y-o-y in April, easing from an 11.0% y-o-y rise in March. The Singapore Economic Development Board cited the electronics and precision engineering clusters as the main contributors to manufacturing output growth.

*     On 25 May, the Monetary Policy Board of the Bank of Korea decided to maintain its base rate at 1.25%. The central bank cited expansion in domestic growth, supported by exports and investments as consumption remained weak. The Monetary Policy Committee of the Bank of Thailand kept the policy rate unchanged at 1.50% in its meeting on 24 May. The committee assessed that Thailand’s economy continues to improve, mainly supported by the sustained recovery in merchandise exports, private consumption, and tourism.

*     Hong Kong, China’s consumer prices rose 2.0% y-o-y in April, up from 0.5% y-o-y in March. The higher inflation rate for April was driven by a low base in the prior year due to government subsidies in April 2016 as well as the timing of the Easter holiday this year. Japan’s consumer price inflation rose to 0.4% y-o-y in April from 0.2% y-o-y in March, primarily due to the higher annual increase in food prices of 0.9% y-o-y in April from 0.5% y-o-y in the previous month. Consumer price inflation in Singapore eased to 0.4% y-o-y in April from 0.7% y-o-y in March. The dip was mainly due to base effects resulting from the service and conservancy charges rebates disbursed in April that helped reduced the cost of housing maintenance and repairs.

*     Hong Kong, China’s exports rose 7.1% y-o-y in April from 16.9% y-o-y in March. Imports grew 7.3% y-o-y in April versus 13.0% y-o-y in March. Hong Kong, China reported a trade deficit of HKD34.1 billion. Japan’s exports rose 7.5% y-o-y to JPY6.3 trillion in April from JPY6.0 trillion a year earlier. Imports rose at a pace of 15.1% y-o-y to JPY5.8 trillion. A trade surplus of JPY482 bllion was recorded in April.

*     Moody’s Investor Services downgraded the People’s Republic of China’s (PRC) long-term local and foreign currency ratings one notch to A1 due to expectations of rising debt levels. Following the ratings cut in the PRC, Moody’s Investor Services likewise downgraded Hong Kong, China’s credit ratings one notch to Aa2. The rating agency said that Hong Kong, China will be affected by rising debt levels in the PRC due to linkages with its markets.

*     Last week, local currency government bond yields for all maturities fell in Viet Nam, and fell for most tenors in Hong Kong, China; Indonesia, Malaysia, Philippines, Singapore, and Thailand; while bond yields were mostly up in the PRC and the Republic of Korea. Yield spreads between 2- and 10-year tenors remained unchanged in the PRC; widened in Indonesia and Viet Nam, while the yield spread narrowed in Hong Kong, China; the Republic of Korea, Malaysia, Philippines, Singapore and Thailand.

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