Last week, RAM Ratings affirmed the People’s Republic of China’s global-scale credit rating at gAA3(pi)/stable and its ASEAN-scale rating at seaAAA(pi)/stable.

To read the full report, data and graphs go to http://asianbondsonline.adb.org/newsletters/abowdh20170410.pdf?src=newsletter&id=uWidK3KdmgXVUWes9IgIcqKp1miwxx

******************************************************************************

News Highlights - Week of 3 - 7 April 2017

The Philippines’ annual gross domestic product growth in 2016 was revised upward by the Philippine Statistics Authority to 6.9% from an initial estimate of 6.8% reported in January. Singapore’s Purchasing Managers Index increased to 51.2 in March from 50.9 in February. A reading above 50 indicates an expansion in the manufacturing sector.

*     Consumer price inflation in the Republic of Korea rose to 2.2% year-on-year (y-o-y) in March from 1.9% y-o-y in February. The Philippines’ inflation rate also accelerated in March, increasing to 3.4% y-o-y from 3.3% y-o-y in February and from 1.1% y-o-y in March 2016. In Indonesia, consumer price inflation eased to 3.6% y-o-y in March from 3.8% y-o-y in February, due largely to lower food prices. Thailand’s consumer price inflation also eased, slowing to 0.8% y-o-y in March due to lower food and vehicle and vehicle operation costs.

*     Malaysia’s export sales maintained strong growth momentum in February, accelerating 26.5% y-o-y to MYR71.8 billion, while imports also posted faster growth, expanding 27.7% y-o-y to MYR63.1 billion. Malaysia posted a trade surplus of MYR8.7 billion in February, up from MYR4.7 billion in January.

*     The Republic of Korea’s current account surplus widened to USD8.4 billion in February from USD5.3 billion in January. The larger surplus was attributed to a widening goods account surplus and the narrowing of the services account deficit.

*     Last week, RAM Ratings affirmed the People’s Republic of China’s global-scale credit rating at gAA3(pi)/stable and its ASEAN-scale rating at seaAAA(pi)/stable. It also affirmed Indonesia’s global rating of gBBB2(pi)/stable/P2(pi) and ASEAN-scale rating of seaAA3(pi)/stable/P1(pi). On 5 April, Rating and Investment Information revised Indonesia’s sovereign rating outlook to positive from stable and affirmed its investment grade issuer rating of BBB–.

*     The Philippines’ foreign exchange reserves declined USD0.57 billion to USD80.87 billion at the end of March compared with the end of February, while Malaysia’s foreign exchange reserves increased to USD95.4 billion from USD95.0 billion in the same period.

*     The Government of the Philippines raised PHP70 billion from its issuance of 3-year Retail Treasury Bonds on 28 March with a coupon rate of 4.25%.

*     China Petroleum and Chemical Corporation (Sinopec) issued a multitranche bond last week comprising a 3-year USD1.0 billion tranche with a coupon rate of 2.375%, a 5-year USD1.1 billion tranche with a coupon rate of 3.0%, and a 30-year USD0.3 billion tranche with a coupon rate of 4.25%. Indonesia Eximbank raised USD500 million from the sale of 7-year bonds with a coupon rate of 3.9%. In Singapore, Fullerton Healthcare issued a USD175 million perpetual bond with a coupon rate of 7.0% for the first 3 years, and every 3 years thereafter, the rate will reset. City Developments Limited raised USD100 million from the sale of 2-year senior secured green bonds with a coupon rate of 1.98%.

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

******************************************************************************