FW: AsianBondsOnline Newsletter (28 August 2017)

To read the full report, data and graphs go to
http://asianbondsonline.adb.org/newsletters/abowdh20170828.pdf?src=newslet
ter&id=uWidK3KdmgXVUWes9IgIcqKp1miwxx

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News Highlights - Week of 21 - 25 August 2017

Based on the latest report of the Office of the National Economic and
Social Development Board, Thailand's gross domestic product (GDP)
continued its upward momentum in the second quarter (Q2) of 2017, growing
3.7% year-on-year (y-o-y) after rising 3.3% y-o-y in the previous quarter.
On the expenditure side, economic growth was supported by the strong
performance in exports of goods and services (6.0% y-o-y) and the rise in
domestic demand, backed by continued growth in private consumption (3.0%
y-o-y) and public consumption (2.7% y-o-y). On the production side, the
agricultural sector rebounded, with growth rising to 15.8% y-o-y in Q2
2017 from 5.7% y-o-y in the prior quarter. However, growth in the
nonagricultural sector slowed to 2.7% y-o-y in Q2 2017 from 3.1% y-o-y in
the prior quarter. This was mainly due to the weakness in mining,
manufacturing, construction, and utilities sectors, which was only
partially offset by the growth in sectors such as hotels and restaurants,
wholesale and retail trade, transport and communication, and financial
intermediation. For full-year 2017, GDP is expected to expand between 3.5%
and 4.0%.

* In a meeting held on 21-22 August, the Board of Governors of Bank
Indonesia decided to cut its 7-day reverse repurchase rate by 25 basis
points to 4.50%. In its assessment, Bank Indonesia noted that inflation
remained low and the current account deficit was manageable, providing
some space for the easing of monetary policy.

* Consumer prices in Hong Kong, China gained 2.0% y-o-y in July
after rising 1.9% y-o-y in June. Driving the increase was a slight
acceleration in transport price increases, with the cost increase rising
to 3.0% y-o-y in July from 2.5% y-o-y in June. Consumer price inflation in
Japan remained unchanged at 0.4% y-o-y for the fourth consecutive month in
July. Food prices rose at a slower pace of 0.6% y-o-y in July versus 0.8%
y-o-y in June; while fuel, light, and water charges rose at a faster pace
of 4.3% y-o-y versus 3.5% y-o-y.

* Consumer price inflation in Malaysia continued its downtrend
through July, falling to 3.2% y-o-y from 3.6% y-o-y in June, 3.9% y-o-y in
May, and 4.4% y-o-y in April. The moderation was connected to tepid global
oil prices, which translated into lower transportation costs. Bank Negara
Malaysia expects price pressures to be contained despite robust domestic
demand. Consumer price inflation in Singapore slightly rose to 0.6% y-o-y
in July from 0.5% y-o-y in June.

* Hong Kong, China's exports rose 7.3% y-o-y in July from 11.1%
y-o-y in June, while imports gained 5.5% y-o-y after rising 10.4% y-o-y
during the same period. Hong Kong, China reported a trade deficit of
HK29.6 billion for the month of July.

* Cifi Holdings (Group) sold USD300 million worth of perpetual
bonds, callable after 5 years. The bonds were priced with a coupon rate of
5.375%. If the bonds are not called, the coupon rate will reprice to the
current 5-year United States Treasury bond yield at that time plus a
spread of 857.1 basis points. Buyers of the bonds were mostly from Asia,
with investors from the region taking up 91% of the total issuance.

* Local yields rose for all tenors in the PRC and in Viet Nam and
for most tenors in the Philippines, Singapore and Hong Kong, China. Yields
fell for all tenors in Indonesia and the Republic of Korea and for most
tenors in Malaysia. Yield movements were mixed in Thailand. The 2-year
versus 10-year yield spread were roughly mixed, with the spread falling in
the Republic of Korea, Malaysia, Singapore and Viet Nam.

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