FW: AsianBondsOnline Newsletter (21 August 2017)

To read the full report, data and graphs go to
http://asianbondsonline.adb.org/newsletters/abowdh20170821.pdf?src=newslet
ter&id=uWidK3KdmgXVUWes9IgIcqKp1miwxx

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News Highlights - Week of 14 - 18 August 2017

Real gross domestic product (GDP) growth of Japan accelerated to 1.0%
quarter-on-quarter (q-o-q) in the second quarter (Q2) of 2017 from 0.4%
q-o-q in the first quarter (Q1) of 2017, based on preliminary estimates
released by the Cabinet Office. The faster growth was driven by expansion
in both private and public demand. Malaysia's GDP growth sustained its
upward momentum in Q2 2017, expanding 5.8% year-on-year (y-o-y), up from
5.6% y-o-y in Q1 2017 and 4.0% y-o-y in Q2 2016. Malaysia's economy
registered average annual growth of 5.7% in the first half of 2017 and
Bank Negara Malaysia expects the economy to grow more than 4.8% in
full-year 2017. The Philippine economy expanded 6.5% y-o-y in Q2 2017
after a moderation in the earlier 2 quarters. Q2 2017 GDP grew faster than
the 6.4% y-o-y growth in Q1 2017, but slower than the 7.1% y-o-y growth
posted in Q2 2016. The Philippines remains one of the best performing
economies in Asia, with the government aiming full-year 2017 GDP growth
of 6.5%-7.5%.

* On 16 August, the Monetary Policy Committee of the Bank of
Thailand maintained the policy rate at 1.50%. The committee assessed that
Thailand's economic outlook would continue to improve, led by merchandise
exports. Domestic demand and headline inflation are poised to gradually
rise, tourism is expected to maintain its expansion, and overall financial
conditions will remain robust.

* Exports from Indonesia climbed 41.1% y-o-y in July after
contracting 11.7% y-o-y in the previous month. Imports also rose 54.0%
y-o-y following a decline of 17.3% in June. Japan's exports rose 13.4%
y-o-y to JPY6.5 trillion in July from JPY5.7 trillion a year earlier. The
rise mainly came from an improvement in exports of transport equipment and
machinery, which account for the two largest shares of exports at 24.0%
and 20.1% of the total, respectively. Following the 8.8% y-o-y growth in
June, Singapore's non-oil domestic exports (NODX) expanded 8.5% y-o-y in
July. The expansion was supported by growth in both electronic NODX (16.3%
y-o-y) and non-electronic NODX (5.2% y-o-y).

* Malaysia posted a higher current account surplus of MYR9.6 billion
in Q2 2017 versus MYR5.3 billion in the previous quarter.

* Foreign demand for the Republic of Korea's local currency bonds
strengthened in July, with foreign investors buying a net KRW2,755 billion
of listed bonds, up from KRW1,551 billion in June. Cumulative bond inflows
for the year through end-July amounted to KRW17,275 billion.

* Personal remittances sent by overseas Filipinos grew 6.8% y-o-y in
June, reaching USD2.8 billion, the highest level since USD2.9 billion was
recorded in March. From January to June, total cash remittances reached
USD13.8 billion, a 4.7% y-o-y increase from the same period a year
earlier.

* Fitch Ratings affirmed Malaysia's long-term foreign- and
local-currency issuer default ratings at A-, with a stable outlook for
both on account of resilient economic expansion despite lower oil prices
and volatile capital flows, continued account surpluses, and solid
external position.

* Local currency government bond yields rose last week for most
tenors in the People's Republic of China (PRC); Hong Kong, China; the
Republic of Korea, Malaysia and Singapore; while it declined for most
tenors in Indonesia, Philippines, Thailand and Viet Nam. Yield spreads
between 2-year and 10-year maturities widened for most emerging East Asian
markets except for PRC, Malaysia, Singapore and Thailand.

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