FW: AsianBondsOnline Newsletter (11 September 2017)

To read the full report, data and graphs go to
http://asianbondsonline.adb.org/newsletters/abowdh20170911.pdf?src=newslet
ter&id=uWidK3KdmgXVUWes9IgIcqKp1miwxx

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News Highlights - Week of 4 - 8 September 2017

Japan's real gross domestic product growth in the second quarter of 2017
was revised downward to 0.6% quarter-on-quarter (q-o-q) from a preliminary
estimate of 1.0% q-o-q. The downward revision was driven by the slower
q-o-q growth rates of private consumption, private residential investment,
and private nonresidential investment. On a seasonally adjusted annualized
basis, Japan's economic growth was revised downward to 2.5% in the second
quarter of 2017 from a preliminary estimate of 4.0%.

* The Purchasing Managers Index in Singapore rose to 51.8 in August
from a 51.0 in July, backed by an improvement in manufacturing activity
and expansion in new orders and exports, factory outputs, and inventory
levels.

* Bank Negara Malaysia decided to maintain its overnight policy rate
at 3.00% during its policy meeting on 7 September on account of a vibrant
global and domestic economic outlook despite some geopolitical concerns.

* Consumer price inflation moderated in Indonesia to 3.8%
year-on-year (y-o-y) in August from 3.9% y-o-y in July due to slower
increases in food prices. On a month-on-month basis, however, deflation of
0.07% was recorded. In the Philippines, inflation rose at a faster pace in
August of 3.1% y-o-y compared with 2.8% y-o-y in July, mainly driven by
higher prices of food items and nonfood commodities, particularly in the
transport group and the housing, water, electricity, gas, and other fuels
group.

* The People's Republic of China posted slower export and import
growth rates in August at 6.9% y-o-y and 14.4% y-o-y, respectively,
resulting in a smaller trade surplus of CNY286.5 billion. Malaysia's trade
activity rebounded in July with double-digit growth rates in exports
(30.9% y-o-y) and imports (21.8% y-o-y) after a slowdown in June. Malaysia
registered a trade surplus of MYR8.0 billion in July, 5.9% larger than in
July 2016.

* Japan's current account surplus widened to JPY2.3 trillion in
July, primarily driven by growth in the primary income account surplus. In
the Republic of Korea, the current account surplus widened to USD7.3
billion in July, led by increased surpluses in the goods and primary
income accounts.

* Malaysia's international reserves at the end of August climbed to
USD100.5 billion, the highest level year-to-date in 2017. The Philippines'
international reserves increased to USD81.5 billion at the end of August,
largely due to revaluation adjustments in the Bangko Sentral ng Pilipinas'
gold holdings as the price of gold increased in the international market.

* On 4 September, the Bank of Thailand further eased its capital
outflow regulations, which included raising the maximum quota for overseas
indirect investments set by the Securities and Exchange Commission to
USD100 billion from USD75 billion, and the easing of rules governing money
changers.

* Last week, local currency government bond yields fell for most
tenors in Hong Kong, China, the Republic of Korea, the Philippines,
Singapore, and Thailand. Yields fell for all tenors in the People's
Republic of China, Indonesia, Malaysia, and Viet Nam. The spread between
the 2- and 10-year maturities narrowed for most markets except for the
People's Republic of China, Malaysia, and Viet Nam.

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