To read the full report, data and graphs go to http://www.asianbondsonline.adb.org/newsletters/abowdh20150202.pdf?src=newsletter&id=uWidK3KdmgXVUWes9IgIcqKp1miwxx
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News Highlights - Week of 26 - 30 January 2015
The Philippines' real gross domestic product (GDP) growth
accelerated to 6.9% year-on-year (y-o-y) in 4Q14, following growth of 5.3%
y-o-y in 3Q14 and 6.3% y-o-y in 4Q13. Growth in 4Q14 was mainly driven by the
industrial sector, particularly manufacturing and construction, which expanded
9.2% y-o-y, following 7.6% y-o-y growth in 3Q14. The agriculture, forestry, and
fishing sector posted 4.8% y-o-y growth, a reversal from the –2.2% y-o-y decline in 3Q14. Meanwhile,
growth in the services sector rose to 6.0% y-o-y in 4Q14 from 5.3% y-o-y in the
previous quarter. For full-year 2014, real GDP grew 6.1%, down from 7.5% growth
in 2013.
* In a meeting
held on 28 January, the Monetary Policy Committee of Bank Negara Malaysia
decided to keep its overnight policy rate unchanged at 3.25%. Also last week,
the Monetary Authority of Singapore (MAS) decided to reduce the slope of the
Singapore dollar nominal effective exchange rate (S$NEER) policy band, while
keeping the width and the level at which it is centered unchanged. Meanwhile,
the Bank of Thailand’s Monetary Policy Committee decided on 28 January to keep
the policy interest rate steady at 2.00%.
* Hong Kong,
China’s export growth rose to 0.6% y-o-y in in December from 0.4% y-o-y in
November. Import growth slowed to 1.9% y-o-y in December from 2.4% in November.
The weak export growth was due to declines in exports to Asia. The Republic of
Korea's merchandise exports fell 0.4% y-o-y in January whereas merchandise imports
dropped at a faster pace, by 11.0% y-o-y, leading the merchandise trade surplus
to widen to US$5.5 billion for the month. The current account surplus stood at
US$7.2 billion in December. The
Philippines posted a merchandise trade surplus of US$272 million in November,
versus a US$1.3 billion deficit in the same month last year. Total merchandise
exports increased 21.7% y-o-y in November and total merchandise imports
declined 10.8% y-o-y. Thailand recorded a current account surplus in December
amounting to US$5.5 billion, up from November's US$1.7 billion.
* Consumer price
inflation in Japan remained unchanged at 2.4% y-o-y in January. The commodity
groups that posted higher annual increases include food (3.1% vs 2.9%) and
furniture and household utensils (3.4% vs 3.3%).
* The People’s
Republic of China’s manufacturing PMI fell to 49.8 in January from 50.1 in
December, indicating a contraction in manufacturing activity. Industrial
production in Japan increased 1.0% month-on-month (m-o-m) and 0.3% y-o-y in
January. In Singapore, manufacturing output contracted for the second
consecutive month in December, dipping –1.9% y-o-y after declining –2.1% y-o-y
in November. Manufacturing production in
Thailand slipped 0.3% y-o-y in December.
* Security Bank
Corp., a universal and commercial bank in the Philippines, raised US$300
million from the issuance of 5-year senior unsecured notes. The notes carry a
coupon of 3.95% and were assigned a BB+ bond rating by Standard & Poor’s.
* Yields fell
for all tenors in Indonesia, Malaysia and Viet Nam and for most tenors in the
Philippines and Singapore, largely on the back of weaker growth
expectations. Yields rose in the PRC,
Hong Kong, China and Thailand. The spread between 2- and 10-year yields
narrowed in all markets in the region except for Japan, the PRC, Hong Kong, China
and Indonesia.
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