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Asia - Weekly Debt Highlights

Asia - Weekly Debt Highlights

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Published by rryan123123
Asian Development Bank - December 05, 2011
Asian Development Bank - December 05, 2011

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Published by: rryan123123 on Dec 07, 2011
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12/10/2011

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5 December 2011asianbondsonline.adb.org 
……………………………………………………………………………………………………………..……………..……
Key Developments in Asian Local Currency Markets
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onsumer price inflation in Indonesia eased for a third consecutive month in November to 4.15% year-on-year (y-o-y) compared with 4.42% in October. In the Republic of Korea consumer price inflation accelerated to 4.2% y-o-yin November from 3.6% in October on the back of price hikes in food, transportation, and utilities. In Thailandconsumer price inflation stood at 4.19% y-o-y in November, the same rate as in October.The People's Bank of China announced lastweek that it will reduce the reserve requirementratio of banks by 50 basis points (bps) effective5 December. The Philippines held steady itspolicy rates last week, while the Bank ofThailand decided to lower its policy interest rateby 25 bps to 3.25%.Philippine real GDP growth eased to 3.2%y-o-y in 3Q11 from 3.4% in the previousquarter. The purchasing managers' index (PMI)for the People's Republic of China's (PRC)manufacturing sector fell to 49.0 in Novemberfrom 50.4 in October. Industrial production inthe Republic of Korea grew 6.2% y-o-y inOctober, while contracting 35.8% y-o-y inThailand. Japan's industrial production rose2.4% month-on-month (m-o-m) in October.The Republic of Korea's current accountsurplus widened to US$4.2 billion in October,the largest surplus position since November2010. In contrast, Thailand's current accountsurplus shrank to US$39 million in October.Indonesia's export growth stood at 16.7% y-o-y in October, compared with 44.0% annualgrowth in September. The Republic of Korea'sannual export growth accelerated to 13.8% inNovember from 8.0% in October.Last week, Shenzhen raised CNY2.2 billionfrom a dual-tranche local government bondsale; ICBC issued US$750 million worth of 10-year bonds; Hyundai Motors priced US$500million worth of 5.5-year bonds; BMW Australiasold CNH400 million of 1-year bonds in HongKong, China; Anih Berhad-a Malaysian toll roadoperator-raised MYR2.5 billion from a multi-tranche Islamic medium-term note sale; andMalaysian holding company DRB-HICOMraised MYR500 million from a dual-tranchesukuk (Islamic bonds) sale. LCY corporatebond issuance in the Republic of Korea surged20.3% m-o-m in October.Last week, Pefindo—an Indonesian ratingagency—announced plans of the localgovernments of Jakarta and Makassar to issuemunicipal bonds. Separately, the Indonesian government plans to offerretail
sukuk 
by March 2012. In the Philippines, Security Bank plans toissue up to PHP5 billion of long-term negotiable certificates of timedeposit.Bank Negara Malaysia and the Monetary Authority of Singaporesigned a Memorandum of Understanding last week to enhance theliquidity of financial institutions in both countries and strengthencooperation in carrying out domestic liquidity management.Government bond yields fell last week for all tenors in Indonesiaand Thailand, and for most tenors in the PRC, Republic of Korea,Malaysia, and the Philippines. Yields rose for most tenors in HongKong, China; Singapore; and Viet Nam. Yield spreads between 2- and10-year tenors widened in the PRC; Hong Kong, China; Republic ofKorea; Singapore; Thailand; and Viet Nam, while spreads narrowed inIndonesia, Malaysia, and the Philippines.
What's New: 
Last week the results of our 2011 Asia Bond MarketSurvey were attached to our quarterly Asia Bond Monitor. This weekwe are sending out the survey to our
AsianBondsOnline 
distribution listas a separate document.
C
10-Year Selected LCY Government Security Yields
Close of 2 December 2011 
basis point change from
 
Previous Day*
 
MarketsLatest ClosingPrevious Week*1-Jan-11*
US2.03-5.426.96-126.04EU2.14-4.30-12.80-82.80Japan1.04-2.101.60-8.40PRC3.49-8.00-14.00-42.00ong Kong, China1.35-0.708.30-150.50dia8.67-3.00-15.1075.30HInIndonesia6.23-14.40-66.50-137.60Malaysia3.720.00-2.40-31.60Korea, Rep. of3.79-1.00-1.00-73.00Philippines5.590.53-9.40-29.57Singapore1.734.006.00-98.00Thailand3.29-5.00-12.90-43.40Viet Nam12.8826.2019.20112.50
 
………………………………………………………………………………………..……………………………..……...…
asianbondsonline.adb.org 
………………………………………………………………………..………………………………………………….......
EBT HIGHLIGHTS
 ASIANBONDSONLINE
 
Summary Text of News ArticlesConsumer Price Inflation Eases in Indonesia, Accelerates in Republic of Korea,Remains Steady in Thailand in November 
.......................................................................................................................
Consumer price inflation in Indonesia eased for a third straight month in November to 4.15% year-on-year (y-o-y),compared with 4.42% in October, amid lower food price inflation. The November inflation figure was a 19-month lowand provides room for the central bank to keep its benchmark interest rate at low levels to ensure economic growth.Bank Indonesia's Board of Governors is scheduled to meet on 8 December. Consumer price inflation for January toNovember was 3.2%, well below the 5.65% target set by the government and the 4.0%-6.0% target of Bank Indonesia.In the Republic of Korea consumer price inflation-based on the revised consumer price index (CPI) using 2010 as thebase year-accelerated to 4.2% y-o-y in November from 3.6% in October. The increase was accentuated by a 6.0% y-o-y hike in prices for food and non-alcoholic beverages. Transport costs also rose for the month, by 8.2% y-o-y, and theprice indices for clothing and footwear and housing and utilities increased 6.0% and 6.3% y-o-y, respectively. On amonth-on-month (m-o-m) basis, the CPI rose marginally by 0.1% in November.Meanwhile, the government of the Republic of Korea launched a new CPI with 2010 as the base year in order to bettercapture the impact of recent economic and social changes in the country on price fluctuations.In Thailand consumer price inflation stood at 4.19% y-o-y in November, the same rate as in October. Food pricescontinued their steady climb, rising 10.2% y-o-y for the month following a 9.9% increase in the previous month. Thiswas the eighth consecutive month for consumer price inflation to have exceeded 4.0% on a y-o-y basis. Consumerprices climbed 0.2% m-o-m in November.For historical trends on inflation in Indonesia, refer to this link:http://asianbondsonline.adb.org/indonesia/data/marketwatch.php?code=policy_rate_and_inflation_trends For inflation rate statistics in the Republic of Korea, refer to this link:http://asianbondsonline.adb.org/korea/data/macroeconomic_credit.php For inflation rate statistics in Thailand, refer to this link:http://asianbondsonline.adb.org/thailand/data/macroeconomic_credit.php 
PRC Cuts Reserve Requirement Ratio of Banks;Policy Rates Kept Unchanged in the Philippines, Lowered in Thailand
.......................................................................................................................
The People's Bank of China (PBOC) announced last week that it will reduce the reserve requirement ratio of banks by50 basis points (bps) effective 5 December. For large commercial banks the new reserve requirement ratio is 21%. Thisis the first time in 3 years that the PBOC has lowered the reserve requirement ratio.In the Philippines the Monetary Board of Bangko Sentral ng Pilipinas (BSP) decided to leave its policy rates unchangedlast week. The interest rates on term reverse repurchases, repurchases, and special deposit accounts were alsomaintained. The reserve requirement ratios remained unchanged as well. While subdued economic growth was takeninto account, BSP also took note of the upside risks to prices. BSP raised its average inflation forecast for the years2011, 2012, and 2013 from 4.46%, 3.05%, and 3.02%, respectively, to 4.52%, 3.51%, and 3.12%.The Bank of Thailand's Monetary Policy Committee decided on 30 November to cut the policy interest rate-the 1-dayrepurchase rate-by 25 bps to 3.25%. The Committee noted the increased risk of a global economic slowdown amid theeurozone's sovereign debt crisis and the United States' (US) fragile economic recovery. It took into account the adverseimpact of flooding on the domestic economy, with an expectation of slower economic growth for the fourth quarter andthe full year. Against this backdrop the accommodative monetary policy stance of the central bank will help supporteconomic restoration and reconstruction efforts, as well as support investment activity.For policy rate trends in the Philippines, refer to this link:http://asianbondsonline.adb.org/philippines/data/marketwatch.php?code=policy_rate_and_inflation_trends
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………………………………………………………………………………………………………………………..……….………………………………………………………………………………………………………………………..….......
asianbondsonline.adb.org 
EBT HIGHLIGHTS
 ASIANBONDSONLINE
 
Summary Text of News ArticlesPhilippine Real GDP Growth Eases to 3.2% y-o-y in 3Q11;Manufacturing Activity Contracts in the PRC in November;Industrial Output Grows in Japan and Republic of Korea, Contracts in Thailand in October 
.......................................................................................................................
Real gross domestic product (GDP) growth in the Philippines eased to 3.2% y-o-y in 3Q11 from a revised 3.4% in2Q11. The slowdown in growth was attributed to the eurozone's debt crisis, still limited government spending, theimpact of tropical storms on the agricultural sector, and high oil prices. Growth for the quarter was buoyed primarily bythe services sector, which expanded 5.3% y-o-y, while agriculture, hunting, forestry, and fisheries grew 1.8% y-o-y.Cumulative GDP for the first 9 months of 2011 stood at 3.6% y-o-y, lower than the government's full-year target of 4.5%.The People's Republic of China's (PRC) manufacturing activity dropped in November as indicated by a fall in themanufacturing purchasing managers' index (PMI). The PRC's manufacturing PMI fell to 49.0 from 50.4 in October. APMI reading below 50 indicates a contraction in manufacturing activity.In Japan industrial production accelerated 2.4% m-o-m in October, reversing a drop of 3.3% m-o-m in September.Actual factory output beat expectations of a 1.2% m-o-m increase, supported by demand for automobiles. Thetransport, general machinery, and chemical (excluding drugs) sectors led gainers. In terms of commodities, large andsmall passenger cars and drive, transmission, and control parts posted the largest increases. The outlook for industrialproduction, however, is bleak as overseas demand is expected to slow.Industrial output in the Republic of Korea grew 6.2% y-o-y in October, but was down 0.7% from the previous month.Manufacturing production growth slowed to 6.3% y-o-y in October from 7.1% in September largely due to weakergrowth in vehicle production.Thailand's manufacturing production index plunged 35.8% y-o-y in October amid supply disruptions caused by theflooding. Among the sectors adversely affected by the flooding were the automobile, electrical appliance, and hard diskdrive and integrated circuits and parts industries.For manufacturing production statistics in Thailand, refer to this link:http://asianbondsonline.adb.org/thailand/data/macroeconomic_credit.php 
Current Account Surplus Widens in Republic of Korea, Narrows in Thailand in October 
.......................................................................................................................
The Republic of Korea's current account surplus in October widened to US$4.2 billion, the largest surplus sinceNovember 2010. The increase was on the back of the goods account surplus rising to US$3.7 billion as the monthlydecline in merchandise imports outpaced that of merchandise exports. The primary income surplus also increased toUS$640 million in October from US$540 million in the previous month.Thailand's current account surplus shrank to US$39 million in October from US$404 million in September. The declinein the country's surplus position was largely due to a marginal decline in export growth of 0.1% y-o-y coupled with20.6% y-o-y import growth.For current account statistics in the Republic of Korea, refer to this link:http://asianbondsonline.adb.org/korea/data/macroeconomic_credit.php For export growth and current account statistics in Thailand, refer to this link:http://asianbondsonline.adb.org/thailand/data/macroeconomic_credit.php 
Export Growth Slows in Indonesia in October, Accelerates in Republic of Korea in November 
.......................................................................................................................
In Indonesia export growth stood at 16.7% y-o-y in October-with exports valued at US$16.8 billion-following revised44.0% annual growth in September. Non-oil and gas exports climbed 20.3% y-o-y while oil and gas exports grew at amuch slower pace of 1.9%. Import growth eased to 29.1% y-o-y in October after revised 57.1% growth a month earlier.A trade surplus of US$1.2 billion was recorded in October.
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