* Indonesia recorded a higher trade surplus in December at USD992 million compared with USD834 million in November. Growth rates for exports and imports eased to 15.6% y-o-y and 5.8% y-o-y, respectively. The Philippines’ balance of payments deficit narrowed to USD214 million in

To read the full report, data and graphs go to http://asianbondsonline.adb.org/newsletters/abowdh20170123.pdf?src=newsletter&id=uWidK3KdmgXVUWes9IgIcqKp1miwxx

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News Highlights - Week of 16 - 20 January 2017

The People’s Republic of China’s (PRC) gross domestic product grew 6.8% year-on-year (y-o-y) in the fourth quarter of 2016, up from 6.7% y-o-y in the previous quarter, led by the strong growth in the services sector. In full-year 2016, the PRC’s economy expanded 6.7% y-o-y, up from 6.9% y-o-y in 2015. The PRC’s industrial production growth rose to 6.0% y-o-y in December from 6.2% y-o-y in November.

*     The Republic of Korea’s Producer Price Index rose 1.8% y-o-y in December following an increase of 0.7% y-o-y in November, led by accelerating growth in the manufacturing sector. Consumer price inflation in Malaysia was unchanged in December at 1.8% y-o-y. All components of the Consumer Price Index increased, except for communications, transport, and clothing and footwear. Annual average inflation for 2016 was 2.1%.

*     In a meeting held on 18–19 January, Bank Indonesia’s Board of Governors held steady its 7-day reverse repurchase rate at 4.75%. The deposit facility rate and the lending facility rate were also kept unchanged at 4.00% and 5.50%, respectively. Bank Negara Malaysia decided to maintain its overnight policy rate at 3.00% for the third consecutive time during its Monetary Policy Committee meeting on 19 January on the back of an improved assessment of domestic and global economic conditions.

*     Indonesia recorded a higher trade surplus in December at USD992 million compared with USD834 million in November. Growth rates for exports and imports eased to 15.6% y-o-y and 5.8% y-o-y, respectively. The Philippines’ balance of payments deficit narrowed to USD214 million in December from USD1.7 billion in the previous month, reducing the full-year 2016 balance of payments position to a USD421 million deficit, which was also in contrast to a USD2.6 billion surplus in 2015.

*     In Singapore, non-oil domestic exports recorded positive growth for the second consecutive month in December, expanding 9.4% y-o-y after rising 11.5% y-o-y in November. Both electronic and nonelectronic non-oil domestic exports expanded 5.7% y-o-y and 11.3% y-o-y, respectively, in December.

*     Last week, the Government of the Philippines issued USD2.0 billion worth of 25-year USD-denominated bonds consisting of USD1.5 billion worth of exchange offers and USD500 million of new issuance. The bonds were priced at par with a coupon rate of 3.70%.

*     In the Republic of Korea, foreign investors sold a net KRW527 billion worth of listed bonds in December, lower than the net sale of KRW1.8 trillion recorded in November. Net foreign bond outflows for full-year 2016 amounted to KRW12.3 billion.

*     Overseas personal remittances to the Philippines in November amounted to USD2.4 billion, an 18.4% y-o-y increase from the USD2.1 billion in November 2015.

*     In Thailand, total international foreign reserves rose to USD171.9 billion in December from USD156.5 billion in December 2015.

*     Local currency government bond yields fell for all tenors in Malaysia; and for most tenors in Indonesia and Viet Nam. Yields rose for most tenors in the PRC, the Republic of Korea, the Philippines, Singapore, and Thailand. Meanwhile, yield movements were mixed in Hong Kong, China. Yield spreads between the 2-year and 10-year tenors widened in all markets except in Indonesia, the Republic of Korea, the Philippines, and Thailand.

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