* Consumer prices in Brunei Darussalam fell 0.2% y-o-y in January as prices in the food and non-alcoholic beverages group decreased 0.9% y-o-y and prices in the non-food group were unchanged. In Hong Kong, China, consumer prices rose 1.3% y-o-y in January, up from 1.2% y-o-y in December. Consumer price inflation in Malaysia climbed to

To read the full report, data and graphs go to http://asianbondsonline.adb.org/newsletters/abowdh20170227.pdf?src=newsletter&id=uWidK3KdmgXVUWes9IgIcqKp1miwxx

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News Highlights - Week of 20 - 24 February 2017

Hong Kong, China’s gross domestic product (GDP) growth accelerated to 3.1% year-on-year (y-o-y) in the fourth quarter (Q4) of 2016 from 2.0% y-o-y in the third quarter (Q3) of 2016. The faster growth rate was largely due to stronger domestic demand and a rebound in exports. For full-year 2016, GDP grew 1.9% annually, up from revised 2.4% growth in 2015. Thailand’s GDP rose 3.0% y-o-y in Q4 2016, slightly down from the 3.2% y-o-y growth posted in Q3 2016. Thailand’s economic expansion was supported by growth in both the agricultural sector, which rose 3.2% y-o-y in Q4 2016 after expanding 0.9% y-o-y in the previous quarter, and the non-agricultural sector, which rose 3.1% y-o-y following an increase of 3.2% y-o-y in Q3 2016. For full-year 2016, Thailand’s GDP expanded 3.2% annually, exceeding the 2.9% growth achieved in 2015.

*     Consumer prices in Brunei Darussalam fell 0.2% y-o-y in January as prices in the food and non-alcoholic beverages group decreased 0.9% y-o-y and prices in the non-food group were unchanged. In Hong Kong, China, consumer prices rose 1.3% y-o-y in January, up from 1.2% y-o-y in December. Consumer price inflation in Malaysia climbed to 3.2% y-o-y in January from 1.8% y-o-y in the preceding month, its highest level since 4.2% y-o-y inflation was recorded in February 2016. Singapore’s consumer prices continued to rise in January after inflation returned in December following 2 years of deflation. Consumer price inflation in January rose to 0.6% y-o-y from 0.2% y-o-y in December. Seven out of the ten major subgroups registered price increases.

*     Last week, the Monetary Policy Board of the Bank of Korea decided to maintain its base rate at 1.25%. The central bank cited improvements in the global economic recovery but also noted risks, including the economic policies of the new United States administration, pace of Federal Reserve rate hikes, spread of trade protectionism, and political climate in the eurozone.

*     Exports from Brunei Darussalam amounted to BND512.9 million in December, which represented decreases of 12.4% month-on-month and 23.7% y-o-y. Imports increased 6.9% month-on-month but decreased 4.5% y-o-y to BND309.6 million. Brunei Darussalam registered a trade surplus of BND203.3 million in December. Japan’s exports inched up 1.3% y-o-y to JPY5.42 trillion in January and imports rose 8.5% y-o-y to JPY6.51 trillion, resulting in a monthly trade deficit of JPY1.09 trillion.

*     Based on the latest report from the Singapore Economic Development Board, Singapore’s manufacturing output grew 2.2% y-o-y in January after steeply rising 22.1% y-o-y in December.

*     Upcoming data releases this week include consumer price inflation data for Indonesia, Japan, the Republic of Korea, and Thailand; and trade data for the Republic of Korea, Malaysia, Thailand, and Viet Nam. In addition, Bank Negara Malaysia will hold a monetary policy meeting on 2 March 2017. 

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

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