FW: AsianBondsOnline Newsletter (23 October 2017)

To read the full report, data and graphs go to
http://asianbondsonline.adb.org/newsletters/abowdh20171023.pdf?src=newslet
ter&id=uWidK3KdmgXVUWes9IgIcqKp1miwxx

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News Highlights - Week of 16 - 20 October 2017

The People's Republic of China's (PRC) gross domestic product (GDP) grew
6.8% year-on-year (y-o-y) in the third quarter (Q3) of 2017 after rising
6.9% y-o-y in the second quarter (Q2) of 2017. The lower GDP growth rate
was driven by a slowdown in the economy's secondary industry, which grew
6.3% y-o-y in Q3 2017 versus 6.4% y-o-y in Q2 2017. The other major
industries showed gains, with the primary industry growing 3.7% y-o-y in
Q3 2017 compared with 3.5% y-o-y in the prior period and the tertiary
industry growing 7.8% y-o-y versus 7.7% y-o-y. On a year-to-date basis,
the PRC's GDP grew 6.9% y-o-y through September. Industrial production
growth accelerated to 6.7% y-o-y in the first 3 quarters from 6.0% y-o-y
in the same period in 2016. For the month of September, industrial
production grew 6.6% y-o-y after rising 6.0% y-o-y in August.

* In its meeting on 18-19 October, Bank Indonesia's Board of
Governors left the 7-day reverse repurchase rate unchanged at 4.25%. On 19
October, the Monetary Policy Board of the Bank of Korea decided to
maintain its base rate at 1.25%. The central bank also raised its 2017 GDP
growth forecast to 3.0% from July's projection of 2.8%, while the 2018
forecast of 2.9% growth was maintained.

* Consumer prices in the PRC rose 1.6% y-o-y in September after
gaining 1.8% y-o-y in August, due to a slower pace of increase in food
prices. Producer price increases, however, accelerated to 6.9% y-o-y in
September. In Malaysia, consumer price inflation continued to trend
upward, registering 4.3% y-o-y in September.

* Export growth in Indonesia eased to 15.6% y-o-y in September while
import growth accelerated to 13.1% y-o-y. A trade surplus amounting to
USD1,761 million was posted in August. Based on preliminary data from the
Ministry of Finance, Japanese exports rose 14.1% y-o-y and imports
increased 12.0% y-o-y in September. A trade surplus of JPY670.1 billion
was recorded during the month. In Singapore, non-oil domestic exports
slightly dipped 1.1% y-o-y in September.

* The Philippines' balance of payments in September registered a
surplus of USD24 million, overturning the USD7 million deficit in August
on the back of a recovery in exports, resilient outsourcing revenue, and a
good outturn in portfolio investment, according to the Bangko Sentral ng
Pilipinas. The year-to-date balance of payments posted a deficit of USD1.4
billion through September.

* Personal remittances sent by overseas Filipino workers expanded
9.4% y-o-y to reach PHP2.8 billion in August. Cumulative personal
remittances in January-August amounted to PHP20.7 billion.

* For the second consecutive month, the Republic of Korea's local
currency bond market experienced net foreign capital outflows amid
increased geopolitical risks; the redemption of maturing bonds; and a
sell-off by major investment funds, particularly at the end of September.
Foreign investors sold a net KRW3,732 billion of listed bonds in
September.

* Local currency government bond yields rose for all tenors in the
PRC; Hong Kong, China; the Republic of Korea; Malaysia; and Singapore and
for most tenors in Indonesia, the Philippines, Thailand, and Viet Nam. The
rise in yields in emerging East Asia widely tracked the uptick in yields
in the United States and came ahead of the European Central Bank's
monetary policy meeting this week. The spread between the 2- and 10-year
yields widened for most markets except for Hong Kong, China; the Republic
of Korea; Malaysia; and Viet Nam.

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