FW: AsianBondsOnline Newsletter (9 October 2017)

To read the full report, data and graphs go to
http://asianbondsonline.adb.org/newsletters/abowdh20171009.pdf?src=newslet
ter&id=uWidK3KdmgXVUWes9IgIcqKp1miwxx

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News Highlights - Week of 2 - 6 October 2017

Consumer price inflation in Indonesia eased to 3.7% year-on-year (y-o-y)
in September from 3.8% y-o-y in August. On a month-on-month (m-o-m) basis,
inflation stood at 0.1%. Bank Indonesia expects inflation to remain within
the lower range of its target of 3.0%-5.0% for full-year 2017. Consumer
price inflation in the Philippines accelerated to 3.4% y-o-y in September
from 3.1% y-o-y in August. The rise in inflation was driven by rising food
prices, which occupy a large weight in the consumer price basket. Food
prices rose 3.6% y-o-y in September from 3.5% y-o-y in the previous month.
Thailand's consumer price inflation rose 0.9% y-o-y in September after
increasing 0.3% y-o-y in August. The rise came mainly from supply cuts in
global crude, causing domestic oil prices to rise. Rising prices of fruits
and vegetables (due to the floods), instant food, and tobacco and
alcoholic beverages also contributed to the increase.

* Malaysia's exports grew 21.5% y-o-y in August, down from 30.9%
y-o-y growth in July. The slower y-o-y growth in August was mostly due to
a slowdown in exports of electrical and electronic products, which grew
20.1% y-o-y versus 28.3% y-o-y in July. Exports of petroleum products also
contributed to the slowdown, with exports growing 33.6% y-o-y in August
versus 76.2% in July. Malaysia's import growth accelerated to 22.6% y-o-y
in August from 21.8% y-o-y in July. Malaysia reported a trade surplus of
MYR9.9 billion in August.

* Hong Kong, China's retail sales grew 2.7% y-o-y in August after
gaining 4.0% y-o-y in July. The slower retail sales growth was mostly
driven by a slowdown in growth in sales of jewelry, watches and clocks,
and valuable gifts to 7.3% y-o-y in August from 13.3% y-o-y in July.
Department store retail sales growth also experienced a slight dip, with
sales rising 5.2% y-o-y in August versus 5.5% y-o-y in July. Sales of
food, alcoholic drinks, and tobacco declined 3.9% y-o-y in August after
rising 4.5% y-o-y in the prior month.

* For the 13th consecutive month, Singapore's manufacturing activity
expanded in September with a rise in new orders, exports, and factory
outputs. The Purchasing Managers Index (PMI) posted a reading of 52.0 in
September after a PMI of 51.8 was recorded in August, boosted by growth in
electronics manufacturing activity. The electronics sector PMI increased
in September to 53.6 from 53.2 in August.

* The Government of Viet Nam has approved a 3-year roadmap for bond
market development, with the aim of aligning the development of the bond
market with the money market and capital market. Under the roadmap, the
share of bonds to gross domestic product is expected to increase to 45% by
2020 and to 65% by 2030.

* The Government of Malaysia reported that its foreign exchange
reserves rose to USD101.2 billion on 29 September from USD100.8 billion on
15 September.

* Local currency government bond yields rose for most tenors in Hong
Kong, China, Indonesia and Malaysia. Yields fell for all tenors in Viet
Nam and for most tenors in Singapore and Thailand. Yields movements were
mixed in the Philippines while yields were unchanged in the People's
Republic of China and the Republic of Korea due to their respective long
holidays. The 2-year versus 10-year yield spread rose for most markets
except in Hong Kong, China, Malaysia, the Philippines and Thailand.

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