FW: AsianBondsOnline Newsletter (2 October 2017)

To read the full report, data and graphs go to
http://asianbondsonline.adb.org/newsletters/abowdh20171002.pdf?src=newslet
ter&id=uWidK3KdmgXVUWes9IgIcqKp1miwxx

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News Highlights - Week of 25 - 29 September 2017

Real gross domestic product growth in Viet Nam climbed to 7.5%
year-on-year (y-o-y) in the third quarter of 2017 from a revised 6.3%
y-o-y hike in the second quarter of 2017, lifting the economic expansion
in the first 9 months of the year to 6.4% y-o-y from 5.7% y-o-y in the
first half of the year. The government's growth target for full-year 2017
is set at 6.7%.

* Industrial production in Japan recovered in August, growing 2.1%
month-on-month (m-o-m) following a contraction of 0.8% m-o-m in July,
driven by output increases in general-purpose, production, and
business-oriented machinery; transport equipment; and electronic parts and
devices. The Republic of Korea's industrial production rebounded to growth
of 2.7% y-o-y in August after declining a revised 0.2% y-o-y in July,
largely supported by growth in manufacturing output. In Singapore,
manufacturing output climbed 19.1% y-o-y in August, down from 21.1% y-o-y
growth in the previous month. In Viet Nam, industrial production growth
climbed to 13.2% y-o-y in September from 8.4% y-o-y in August, led by
higher output in the manufacturing sector.

* In its meeting held on 27 September, the Bank of Thailand's
Monetary Policy Committee decided to keep its policy rate unchanged at
1.50%. The committee deems the current accommodative monetary policy
stance is supportive of economic growth and is expected to help bring
inflation back to its target range of 1.0%-4.0%. The Bank of Thailand has
revised its economic growth estimates for 2017 and 2018 upward to 3.8% for
each year.

* Consumer price inflation in Japan picked up in August to 0.7%
y-o-y after remaining unchanged at 0.4% y-o-y in each of the past 4
months. Consumer price inflation slowed in Singapore to 0.4% y-o-y in
August from 0.6% y-o-y in July, largely due to slower increases in private
road transport costs. Consumer price inflation in the Republic of Korea
eased to 2.1% y-o-y in September on the back of slower price growth of
food and non-alcoholic beverages. In Viet Nam, consumer price inflation
inched up to 3.40% y-o-y in September from 3.35% y-o-y posted in the
earlier month.

* Merchandise exports from Hong Kong, China gained 7.4% y-o-y in
August and imports grew 7.7% y-o-y. Total exports reached HKD332.7 billion
and imports hit HKD368.2 billion, resulting in a trade deficit valued at
HKD35.5 billion in August. In Thailand, export growth climbed to 15.8%
y-o-y in August and import growth slowed to 14.3% y-o-y. The trade surplus
widened to USD3.4 billion in August. Export and import growth rates
remained robust in Viet Nam, rising 23.2% y-o-y and 27.8% y-o-y in
September, respectivley. Total exports rose to USD19.0 billion and imports
reached USD18.6 billion, resulting in a trade surplus of USD400 million.

* The current account of the Republic of Korea registered a narrower
surplus of USD6.1 billion in August compared with USD7.3 billion in July.
In Thailand, the current account surplus widened to USD4.7 billion in
August from USD2.8 billion in July.

* Local currency government bond yields rose for most tenors last
week in Hong Kong, China; Indonesia; Malaysia; Singapore; and Thailand
while yields rose for all tenors in the Republic of Korea. Yields for most
tenors fell in Viet Nam while yield movements were mixed in the People's
Republic of China and the Philippines. The yield spread between the 2- and
10-year tenors widened for most emerging East Asian markets except for
Indonesia, Malaysia, the Philippines, and Singapore.

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