key developments in asian local currency markets ... · reduced the reserve requirement ratio of...

26 October 2015

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Key Developments in Asian Local Currency Markets


1

he People’s Republic of China’s (PRC) economy grew 6.9% year-on-year (y-o-y) in 3Q15, down slightly from 7.0% y-o-y growth in 2Q15. By sector, the fastest growth was in the service sector, which expanded 8.6% y-o-y, followed by the manufacturing industry, which grew 5.8% y-o-y. The agricultural industry grew 4.1% y-o-y in 3Q15. In January–September, the PRC’s gross domestic product (GDP) expanded 6.9% y-o-y. On a quarter-on-quarter (q-o-q) basis, GDP grew 1.7% in 3Q15. Real GDP growth in the Republic of Korea accelerated to

2.6% y-o-y in 3Q15 from 2.2% y-o-y in 2Q15, buoyed by improved growth in domestic demand and in the construction, manufacturing, and utilities sectors. On a q-o-q basis, real GDP growth in the Republic of Korea accelerated to 1.2% in 3Q15 from 0.3% in 2Q15.

The People’s Bank of China (PBOC) last week reduced its key policy rates by 25 basis points (bps), taking the 1-year lending rate to 4.35% and the 1-year deposit rate to 1.50%. The PBOC also removed the ceiling on deposit rates for commercial and rural banks and reduced the reserve requirement ratio of financial institutions by 50 bps (17.50% for major banks and 15.50% for smaller banks), with select financial institutions qualifying for an additional 50 bps reduction.

Consumer price inflation in Hong Kong, China fell to 2.0% y-o-y in September from 2.4% y-o-y in August, due to slower price increases in housing rents and a more rapid decline in utility prices. In Malaysia, consumer price inflation eased to 2.6% y-o-y in September from 3.1% y-o-y in August, mainly due to the contraction in the transportation sub-index accelerating to –3.8% y-o-y from –1.2% y-o-y in August. Consumer prices slipped in Singapore, falling 0.6% y-o-y in September after declining 0.8% y-o-y in August. The slight uptick in prices was due mainly to increases in consumer services and retail items.

Japan's merchandise trade deficit narrowed to JPY114.5 billion in September from JPY569.4 billion in August.

Local currency (LCY) corporate debt issuance in the Republic of Korea rose to KRW10.5 trillion in September from KRW7.6 trillion in August, led by monthly increases in the issuance of asset-backed securities, bank debentures, and financial bonds.

In Viet Nam, the National Assembly approved the government’s plan to raise US$3 billion through the issuance of bonds and will also allow the issuance of LCY government bonds with maturities of 5 years or less beginning in November.

Last week, the Indonesian government raided a total of IDR27,439 billion from the sale of retail bonds. The bonds carry a maturity of 3 years and a coupon rate of 9.0%. The PBOC issued a CNY5 billion 1-year central bank bill in London at a yield of 3.1%. Dongfeng Motors, based in the PRC, issued a EUR500 million 3-year bond at a coupon rate of 1.6%.

LCY government bond yields rose for most tenors in most markets with the exception of Malaysia. In Malaysia, yields fell for most tenors following lower inflation and the government’s commitment to reduce the deficit based on 2016 budget. In the PRC, yields rose slightly for most tenors, despite the decline in policy rates as news was released after markets closed. Yield movements were mixed in Singapore. The 2-year versus 10-year spread rose in Hong Kong, China, Malaysia, Thailand.

T Asia Bond Monitor September 2015 read more

10-Year Selected LCY Government Security Yields


Close of 23 October 2015

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basis point change from Markets Latest Closing Previous Day* Previous Week* 1-Jan-15*

US 2.09 6.03 5.32 -8.46

EU 0.51 1.60 -3.60 -2.90

Japan 0.30 -0.50 -1.70 -2.60

PRC 3.08 -1.00 -1.00 -57.00

Hong Kong, China 1.49 -0.90 1.40 -40.90

India 7.58 -0.30 1.80 -29.80

Indonesia 8.68 -11.50 1.60 85.20

Korea, Rep. of 2.10 -1.80 4.00 -50.30

Malaysia 4.13 -1.00 0.90 -1.80

Philippines 3.68 0.26 0.68 -18.67

Singapore 2.40 -6.47 2.93 12.27

Thailand 2.58 0.00 8.80 -14.70

Viet Nam 7.17 3.10 6.70 -6.30

5.32

-3.60

-1.70

-1.00

1.40

1.80

1.60

4.00

0.90

0.68

2.93

8.80

6.70

Selected Benchmark Yield Curves - Local Currency Government Bonds

Policy Rate versus Inflation Rate Charts

Government Security Yields

Credit Default Swap Spreads & Exchange Rate Indexes Selected Debt Security Issuances Selected Asia Data Releases

2-versus-10 Yield Spread Chart

http://asianbondsonline.adb.org/documents/abm_sep_2015.pdf?src=wdh

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DEBT HIGHLIGHTSASIANBONDSONLINE

2

Summary Text of News Articles

The PRC’s GDP Growth Slows in 3Q15, Industrial Production Slows in September;

The Republic of Korea's GDP Growth Accelerates in 3Q15 ........................................................................................................................................ The People’s Republic of China’s (PRC) economy expanded 6.9% year-on-year (y-o-y) in 3Q15, down slightly from 7.0% y-o-y growth in 2Q15. The fastest growth was in the service sector, which expanded 8.6% y-o-y, followed by the manufacturing industry, which grew 5.8% y-o-y. The agrilcutural industry grew 4.1% y-o-y in 3Q15. In January–September, the PRC’s gross domestic product (GDP) grew 6.9% y-o-y. On a quarter-on-quarter (q-o-q) basis, GDP grew 1.7%.

Industrial production growth in the PRC slowed in September to 5.7% y-o-y from 6.1% y-o-y in August. The three major sectors all showed declines in y-o-y growth rates: mining and quarrying growth fell to 1.2% from 4.0%; manufacturing fell to 6.7% from 6.8%; and growth in the distribution of electricity, gas, and water fell to 0.7% from 1.9%.

Real GDP growth in the Republic of Korea accelerated to 2.6% y-o-y in 3Q15 from 2.2% y-o-y in 2Q15, based on advance estimates from the Bank of Korea, buoyed by improved growth in domestic demand and growth in the construction, manufacturing, and utilities sectors. In 3Q15, y-o-y growth accelerated for private consumption, gross fixed capital formation, and imports of goods and services; growth reversed from negative to positive for exports of goods and services. On the production side, y-o-y growth accelerated for manufacturing and utilities, shifted from negative to positive for construction, and contracted less rapidly for agriculture, forestry, and fishing. On a q-o-q basis, real GDP growth accelerated to 1.2% in 3Q15 from 0.3% in 2Q15.

The PBOC Cuts Policy Rates and the RRR ........................................................................................................................................ The People’s Bank of China (PBOC) last week reduced its key policy rates by 25 basis points (bps), taking the 1-year lending rate to 4.35% and the 1-year deposit rate to 1.50%. The PBOC also removed the ceiling on deposit rates for commercial and rural banks, allowing banks more freedom in setting deposit rates, and reduced the reserve requirement ratio (RRR) of financial institutions by 50 bps (17.50% for major banks and 15.50% for smaller banks). Select financial institutions, such as those involved in agriculture, will qualify for an additional 50 bps reduction in the RRR.

Consumer Price Inflation Falls in Hong Kong, China; Malaysia; and Singapore in September;

The Republic of Korea’s PPI Falls in September ........................................................................................................................................ Consumer price inflation in Hong Kong, China fell to 2.0% y-o-y in September from 2.4% y-o-y in August, due to slower price increases in housing rents, which fell to 3.6% y-o-y in September from 4.4% y-o-y in August, and an accelerating decline in utilities prices to –10.7% y-o-y from –4.6% y-o-y due to a special rebate in September. The government expects inflationary pressures to be contained given the lack of domestic cost pressures and low import prices.

In Malaysia, consumer price inflation eased to 2.6% y-o-y in September from 3.1% y-o-y in August, mainly due to an accelerating contraction in the transportation sub-index to –3.8% y-o-y from –1.2% y-o-y in August. Inflation in the food and non-alcoholic beverages sub-index, which accounts for the single largest weight in the inflation index at 30.3%, inched up to 4.3% y-o-y in September from 3.8% y-o-y in August. All other indices posted either the same or higher y-o-y rates of increase in September, except for the alcoholic beverages and tobacco index and the health index.

Consumer prices dipped again in Singapore, falling 0.6% y-o-y in September after declining 0.8% y-o-y in August. The slight uptick in prices was due mainly to increases in consumer services and retail items. Services inflation inched up to 0.8% y-o-y in September on increases in healthcare service fees and public road transport costs. Retail item costs climbed 0.6% y-o-y in September, driven by clothing and footwear and household durables. Between August and September, consumer price inflation was unchanged. The Monetary Authority of Singapore estimates that inflation will average between –0.5% and 0.5% in 2016, up from around -0.5% in 2015.

The Republic of Korea’s Producer Price Index (PPI) fell 4.5% y-o-y in September, the same rate of decline as in August, according to data from the Bank of Korea. Prices of manufacturing industry products and electric power, gas, and water fell 7.4% y-o-y and 9.3% y-o-y, respectively, contributing to the PPI’s y-o-y decrease. Between August and September, the PPI slipped 0.3%.

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3

Summary Text of News Articles

Consumer Price Inflation Falls in Hong Kong, China; Malaysia; and Singapore in September;

The Republic of Korea’s PPI Falls in September (cont…) ........................................................................................................................................ For inflation rate trends in Hong Kong, China, refer to this link: https://asianbondsonline.adb.org/hongkong/data/marketwatch.php?code=policy_rate_and_inflation_trends

For inflation rate trends in Malaysia, refer to this link: https://asianbondsonline.adb.org/malaysia/data/marketwatch.php?code=policy_rate_and_inflation_trends

Japan’s Merchandise Trade Deficit Narrows in September ........................................................................................................................................ Japan's merchandise trade deficit narrowed to JPY114.5 billion in September from JPY569.4 billion in August as exports increased at a faster pace than imports. Exports of goods rose 9.1% month-on-month (m-o-m) to JPY6.4 trillion in September from JPY5.9 trillion in August, while imports increased 1.3% m-o-m to JPY6.5 trillion from JPY6.4 trillion.

LCY Corporate Debt Issuance in the Republic of Korea Rises in September ........................................................................................................................................ Local currency (LCY) corporate debt issuance in the Republic of Korea rose to KRW10.5 trillion in September from KRW7.6 trillion in August, led by monthly increases in the issuance of asset-backed securities, bank debentures, and financial bonds, according to data from the Financial Supervisory Service. Between August and September, asset-backed securities issuance climbed from KRW0.9 trillion to KRW1.6 trillion; issuance of bank debentures grew from KRW1.7 trillion to KRW3.5 trillion; and financial bond issuance increased from KRW2.3 trillion to KRW2.9 trillion. In contrast, nonfinancial corporate bond issues slipped to KRW2.5 trillion in September from KRW2.6 trillion in August.

Viet Nam to Issue US$3 Billion Sovereign Bond, Allow Issuance of Treasury Bonds

with Maturities of Less Than 5 Years ........................................................................................................................................ In Viet Nam, the National Assembly approved the government’s plan to raise US$3 billion through the issuance of bonds. The bond issuance is needed to fund maturing debt due in 2015 and 2016. The National Assembly’s Committee for Budget and Finance, however, noted that borrowing costs for the offshore issuance should not exceed domestic borrowing costs.

The National Assembly also approved a Ministry of Finance proposal to issue government bonds with maturities of 5 years or less beginning in November. Regulations passed in November 2014 limited issuance of Treasury bonds to maturities of 5 years or more, beginning this year. However, sluggish demand for longer-dated bonds has made it difficult for the government to fulfil its issuance target. In response, the Ministry of Finance proposed the issuance of 1-year, 2-year, and 3-year bonds beginning in November.

Indonesian Government Raises IDR27,439 Billion from Sale of Retail Bonds ........................................................................................................................................ Last week, the Indonesian government issued a total of IDR27,439 billion from the sale of retail bonds, its 12th issuance to date. The bonds carry a maturity of 3 years and a coupon rate of 9.0%. A total of 49,521 individuals subscribed to the issue. Of which, 25.2% were private employees and 21.4% were entrepreneurs. The retail bonds were listed on the Indonesia Stock Exchange on 22 October, with trading to commence on 15 December due to the required holding period.

The PBOC Issues CNY 1-Year Bill in London;

Dongfeng Motors Issues 3-Year EUR-Denominated Bond ........................................................................................................................................ Last week, the PBOC issued a CNY5 billion 1-year central bank bill in London at a yield of 3.1%. Total orders for the bond reached CNY30 billion. Half of the bond’s investors came from Asia, with the remainder mostly coming from Europe and the United States.

Dongfeng Motors in the PRC issued a EUR500 million 3-year bond at a coupon rate of 1.6%.

https://asianbondsonline.adb.org/hongkong/data/marketwatch.php?code=policy_rate_and_inflation_trends&src=wdh

https://asianbondsonline.adb.org/malaysia/data/marketwatch.php?code=policy_rate_and_inflation_trends&src=wdh

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4

Tip: Zoom-in on the table using the Acrobat zoom tool

Selected Government Security Yields

3-Month Selected LCY Government Security Yields

10-Year Selected LCY Government Bond Yields



EU = European Union, LCY =local currency, PRC = People’s Republic of China, US = United States.

Source: Based on data from Bloomberg, LP.

Previous

Day*

Previous

Week*1-Jan-15*

US 0.00 0.00 0.00 -3.55

EU -0.25 -2.80 -4.80 -21.20

Japan 0.00 0.70 0.70 -0.30

PRC 2.06 0.00 -5.00 -160.00

Hong Kong, China 0.07 0.00 0.00 -0.80

India 8.31 0.00 0.00 0.00

Korea, Rep. of 1.51 0.00 0.40 -56.20

Malaysia 3.06 0.00 -2.80 -29.60

Philippines 1.87 -42.83 -16.28 -50.50

Singapore 1.07 0.00 -3.00 39.30

Thailand 1.46 0.00 1.25 -58.72

basis point change fromLatest

ClosingMarkets

0.00

-4.80

0.70

-5.00

0.00

0.00

0.40

-2.80

-16.28

-3.00

1.25

Previous

Day*

Previous

Week*1-Jan-15*

US 2.09 6.03 5.32 -8.46

EU 0.51 1.60 -3.60 -2.90

Japan 0.30 -0.50 -1.70 -2.60

PRC 3.08 -1.00 -1.00 -57.00

Hong Kong, China 1.49 -0.90 1.40 -40.90

India 7.58 -0.30 1.80 -29.80

Indonesia 8.68 -11.50 1.60 85.20

Korea, Rep. of 2.10 -1.80 4.00 -50.30

Malaysia 4.13 -1.00 0.90 -1.80

Philippines 3.68 0.26 0.68 -18.67

Singapore 2.40 -6.47 2.93 12.27

Thailand 2.58 0.00 8.80 -14.70

Viet Nam 7.17 3.10 6.70 -6.30

basis point change fromLatest

ClosingMarkets

5.32

-3.60

-1.70

-1.00

1.40

1.80

1.60

4.00

0.90

0.68

2.93

8.80

6.70

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5


Benchmark Yield Curves – LCY Government Bonds

Indonesia

EU = European Union, LCY = local currency US = United States.

Source: Based on data from Bloomberg.

Viet Nam Thailand Singapore

Philippines Malaysia Korea, Republic of

Hong Kong, China China, People’s Rep. of

Japan EU US

0.5

1.0

1.5

2.0

2.5

3.0

0 4 8 12 16 20 24 28 32

Yie

ld (%

)

Time to maturity (years)

23-Oct-15 16-Oct-15 09-Oct-15

-0.4

0.0

0.4

0.8

1.2

1.6

0 5 10 15 20 25 30

Yie

ld (%

)


23-Oct-15 16-Oct-15 09-Oct-15

-0.3

0.1

0.5

0.9

1.3

1.7

0 4 8 12 16 20 24 28 32 36 40

Yie

ld (%

)


23-Oct-15 16-Oct-15 09-Oct-15

2.0

2.5

3.0

3.5

0 1 2 3 4 5 6 7 8 9 10 11

Yie

ld (%

)


23-Oct-15 16-Oct-15 09-Oct-15

-0.1

0.5

1.1

1.7

2.3

0 2 4 6 8 10 12 14 16

Yie

ld (%

)


23-Oct-15 16-Oct-15 09-Oct-15

7.5

8.0

8.5

9.0

9.5

10.0

0 3 6 9 12 15 18 21 24 27 30 33

Yie

ld (%

)Time to maturity (years)

23-Oct-15 16-Oct-15 09-Oct-15

1.3

1.5

1.7

1.9

2.1

2.3

0 2 4 6 8 10 12 14 16 18 20 22

Yie

ld (%

)


23-Oct-15 16-Oct-15 09-Oct-15

2.8

3.2

3.6

4.0

4.4

4.8

0 2 4 6 8 10 12 14 16 18 20 22

Yie

ld (%

)


23-Oct-15 16-Oct-15 09-Oct-15

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

0 3 6 9 12 15 18 21 24 27

Yie

ld (%

)


23-Oct-15 16-Oct-15 09-Oct-15

0.6

1.0

1.4

1.8

2.2

2.6

3.0

0 3 6 9 12 15 18 21 24 27 30

Yie

ld (%

)


23-Oct-15 16-Oct-15 09-Oct-15

1.2

1.7

2.2

2.7

3.2

3.7

4.2

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32

Yie

ld (

%)


23-Oct-15 16-Oct-15 09-Oct-15

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Yie

ld (

%)


23-Oct-15 16-Oct-15 09-Oct-15

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6


2- versus 10- Year Yield Spread Chart

EU = European Union, US = United States.

Source: Based on data from Bloomberg LP.

0 20 40 60 80 100 120 140 160 180 200

US

EU

Japan

China, People's Rep. of

Hong Kong, China

Indonesia

Korea, Rep. of

Malaysia

Philippines

Singapore

Thailand

Viet Nam

basis points

23-Oct-15

16-Oct-15

9-Oct-15

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7


Policy Rate versus Inflation Rate

Hong Kong, China China, People’s Rep. of

Thailand Viet Nam

Indonesia

The PRC uses the 1-year lending rate as one of its policy

rates.

Source: Bloomberg LP.

The Hong Kong Monetary Authority maintains a Discount

Window Base Rate.


Bank Indonesia uses its reference interest rate (BI rate) as

its policy rate.


Korea, Republic of Malaysia Philippines

The Bank of Korea shifted its policy rate from the overnight

repurchase (repo) rate to the 7-day repo rate in March 2008.


Bank Negara Malaysia uses the overnight policy rate

(OPR) as its policy rate.


Bangko Sentral uses the Philippine overnight reverse

repurchase agreement rate as one of its policy instruments.


The Bank of Thailand replaced the 14-day repurchase

rate with the 1-day repurchase rate in January 2007 as

its policy rate.


The State Bank of Viet Nam uses a benchmark prime

lending rate as its policy rate.


1.60

4.35

0

2

4

6

Jan-12 Jun-12 Nov-12 Apr-13 Sep-13 Jan-14 Jul-14 Dec-14 May-15 Oct-15

Inflation Rate

1-year Lending Rate

0.40

4.00

0

1

2

3

4

5

6


Overnight Reverse Repo Rate

Inflation Rate

2.00

0.50

0

2

4

6


HKMA Base Rate

Inflation Rate

0.60

1.50

0

1

2

3

4

5


c

7-day Repo Rate

Inflation Rate

-1.07

1.50

-2

-1

1

2

3

4

5


1-day Repo Rate

Inflation Rate

2.60

3.25

0

1

2

3

4

5


Overnight Policy Rate

Inflation Rate

0.00

9.00

0

4

8

12

16

20


Prime Lending Rate

Inflation Rate

6.83

7.50

3

4

5

6

7

8

9

10


Inflation Rate

BI Rate

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8


Credit Default Swap Spreads and Exchange Rate Indexes

Credit Default Swap Spreads — Senior 5-Year*

Exchange Rate Indexes (vis-à-vis US$, 2 January 2007=100)

* In US$ and based

on sovereign bonds

Source: Bloomberg

Mid

sp

rea

d in

ba

sis

po

ints

Source: AsianBondsOnline calculations

based on Bloomberg data.

0

50

100

150

200

250

300

350

Jan-13 May-13 Oct-13 Mar-14 Jul-14 Dec-14 May-15 Oct-15


Indonesia

Korea, Rep. of

Japan

Malaysia

Philippines

Thailand

Viet Nam

50

60

70

80

90

100

110

120

130

50

60

70

80

90

100

110

120

130

Jan-08 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Nov-10 May-11 Nov-11 May-12 Nov-12 May-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15


Indonesia

Korea, Rep. of

Malaysia

Philippines

Thailand

Singapore

Viet Nam

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9


Selected Debt Security Issuances (19 – 23 October 2015)

CN 19-Oct 30-year Treasury Bonds 3.74 3.74 26.00 26.00

21-Oct 7-year Treasury Bonds 3.05 3.05 28.00 28.01

HK 20-Oct 90-day Exchange Fund Bills 0.01 35.45 35.45

181-day Exchange Fund Bills 0.02 12.00 12.00

ID 20-Oct 6-month Islamic Treasury Bills 7.26 1,000.00

2-year Islamic Treasury Bionds 8.63 7.75 125.00

5-year Islamic Treasury Bionds 8.64 8.25 605.00

JP 20-Oct 20-year Japanese Government Bonds 1.08 1.20 1,200.00 1,248.70

22-Oct 3-month Treasury Discount Bills 0.00 4,800.00 4,779.92

2-year Japanese Government Bonds 0.11 0.10 2,500.00 2,560.40

KR 19-Oct 91-day Monetary Stabilization Bonds 1.53 1,200.00 1,200.00

182-day Monetary Stabilization Bonds 1.51 500.00 500.00

10-year Korea Treasury Bonds 2.08 2.25 1,250.00 1,250.00

21-Oct 2-year Monetary Stabilization Bonds 1.62 1.56 2,000.00 2,000.00

MY 22-Oct 7-year Malaysian Government Securities 4.08 3.80 3.50 3.50

PH 20-Oct 3-year Treasury Bonds 3.17 2.13 25.00 16.22

SG 20-Oct 28-day MAS Bills 0.67 0.50 0.50

84-day MAS Bills 0.57 4.00 4.00

TH 19-Oct 28-day Treasury Bills 1.40 15.00 15.00

182-day Treasury Bills 1.44 20.00 12.77

20-Oct 91-day Bank of Thailand Bonds 1.44 35.00 35.00

182-day Bank of Thailand Bonds 1.46 20.00 20.00

21-Oct 4.67-year Government Bonds 2.15 2.55 20.00 20.00

28.7-year Government Bonds 3.62 4.68 9.00 8.40

VN 21-Oct 5-year Treasury Bonds 6.65 3,000.00 3,000.00

10-year Treasury Bonds 7.00 1,000.00 50.00

LCY = local currency, MAS = Monetary Authority of Singapore.

Sources: Local market sources and Bloomberg, LP.

2,000.00

Amount Issued

(LCY billion)Markets

Auction

Date Type of Securi ty

Average

Y ield (%)

Coupon

(%)

Amount Offered

(LCY billion)

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10

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Selected Asia Data Releases (27 October – 2 November 2015)

Economy and Variable Release Date Historical Data Recent Trends

Hong Kong, China 08/14: 6.4%

Exports 09/14: 4.5%

y-o-y % 07/15: −1.6%

SEP 08/15: −6.1%

Philippines 07/14: −139

Trade Balance 08/14: −373

US$ million 06/15: −554

AUG 07/15: −1,177

Japan 08/14: 3.3%

CPI 09/14: 3.2%

y-o-y, % 07/15: 0.2%

SEP 08/15: 0.2%

Republic of Korea 08/14: −2.8%

Industrial Production 09/14: 2.4%

y-o-y, % 07/15: −2.8%

SEP 08/15: 0.3%

Thailand 08/14: −6.7%

Exports 09/14: 2.2%

y-o-y, % 07/15: −3.1%

SEP 08/15: −5.6%

Thailand 08/14: 548

Current Account Balance 09/14: −542

US$ million 07/15: 2,160

SEP 08/15: 2,650

People’s Republic of China 09/14: 51.1

PMI 10/14: 50.8

Index 08/15: 49.7

OCT 09/15: 49.8

Republic of Korea 09/14: 6.3%

Exports 10/14: 2.3%

y-o-y, % 08/15: −15.1%

OCT 09/15: −8.4%

Indonesia 09/14: 4.5%

CPI 10/14: 4.8%

y-o-y, % 08/15: 7.2%

OCT 09/15: 6.8%

Republic of Korea 08/14: 7,235.1

Current Account Balance 09/14: 7,448.9

US$ million 07/15: 9,301.7

SEP 08/15: 8,455.6

Thailand 09/14: 1.75%

CPI 10/14: 1.48%

y-o-y, % 08/15: −1.19%

OCT 09/15: −1.07%

Source: AsianBondsOnline , Bloomberg LP, and Reuters.

11/02 Thailand’s Consumer Price Index (CPI) fell 1.1% y-o-y in September, the ninth

consecutive month of decline, amid falling energy prices.

11/01 The Republic of Korea’s exports of goods fell 8.4% y-o-y in September follow ing a

15.1% decline in August.

11/02 Consumer price inflation in Indonesia eased to 6.8% y-o-y in September from 7.2%

y-o-y in August.

11/02 The Republic of Korea’s current account surplus narrow ed to US$8.5 billion in

August from US$9.3 billion in July, largely due to a monthly drop in the merchandise

trade surplus.

11/01 The Purchasing Managers Index (PMI) in the People’s Republic of China fell below

the 50-point threshold in September to a reading of 49.8 from 49.7 in August.

10/30 Industrial production in the Republic of Korea rebounded in August, grow ing 0.3%

y-o-y follow ing a 3.2% y-o-y contraction in July.

10/30 Overseas shipments from Thailand fell 5.6% y-o-y in August, compared w ith a 3.1%

drop in July.

10/30 Thailand’s current account surplus w idened to US$2.6 billion in August from US$2.2

billion in July, largely due to a monthly increase in the merchandise trade surplus.

Exports of goods from Hong Kong, China contracted 6.1% year-on-year (y-o-y) in

August after falling 1.6% y-o-y in July.

10/27

10/27 The Philippines’ trade deficit w idened to US$1.2 billion in July from US$554 billion in

June.

10/30 Consumer price inflation in Japan remained unchanged at 0.2% y-o-y in August.

…………………………………………………………………………………………………………………………………

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11

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News Articles: Sources for Further Reading

PRC’s GDP Growth Slows in 3Q15; Industrial Production Slows

in Septmeber; The Republic of Korea's GDP Growth Accelerates

in 3Q15

Overall Economic Development was Stable in the First Three Quarters of 2015

National Bureau of Statistics (19 October 2015)

Industrial Production Operation in September 2015

National Bureau of Statistics (19 October 2015)

Real Gross Domestic Product: 3rd Quarter of 2015 (Advance Estimate)

The Bank of Korea (23 October 2015)

PRC Cuts Policy Rates and RRR

China cuts RRR, interest rates to boost real economy

Xinhua (23 October 2015)

Consumer Price Inflation Fall in Hong Kong, China, Malaysia and

Singapore in September; Korea’s PPI Falls in September

Consumer Price Indices for September 2015

Census and Statistics Department (22 October 2015)

Consumer Price Index Malaysia September 2015

Department of Statistics Malaysia (23 October 2015)

Consumer Price Developments in September 2015

Monetary Authority of Singapore (23 October 2015)

Producer Price Index during September 2015

The Bank of Korea (20 October 2015)

Japan’s Merchandise Trade Deficit Narrows in September

Value of Exports and Imports September 2015 (Provisional)

Ministry of Finance Japan (21 October 2015)

LCY Corporate Debt Issuance in the Republic of Korea Rises in

September

Corporate Debt and Equity Issues, September 2015

Financial Supervisory Service (21 October 2015)

National Assembly Approves Plan to Raise US$3 Billion of Viet

Nam Sovereign Bonds, Allows Issuance of Treasury Bonds With

Maturities of Less Than 5 Years

NA committee backs int'l bond sales

Viet Nam News (22 Oct6ober 2015)

Indonesian Government Raises IDR27, 439 Billion From the Sale

of Retail Bonds

Allotment of Government Retail Bonds Series ORI012 on October 19, 2015

Directorate General of Budget Financing and Risk Management

Ministry of Finance (19 October 2015)

PBOC Issues CNY 1-year Bill in London; Dongfeng Motors Issues

3-year EUR Bond

PBoC steps out with new London landmark

FinanceAsia (20 October 2015)

Dongfeng motors into euros

FinanceAsia (20 October 2015)

http://www.stats.gov.cn/english/PressRelease/201510/t20151019_1257742.html



http://www.bok.or.kr/down.search?file_path=/attach/eng/634/2015/10/1445553243183.pdf&file_name=Real_GDP_3rd_Quarter_of_2015%28advance_estimate%29_f.pdf

http://www.bok.or.kr/down.search?file_path=/attach/eng/634/2015/10/1445553243183.pdf&file_name=Real_GDP_3rd_Quarter_of_2015%28advance_estimate%29_f.pdf

http://news.xinhuanet.com/english/2015-10/23/c_134744637.htm

http://www.censtatd.gov.hk/press_release/pressReleaseDetail.jsp?charsetID=1&pressRID=3688

https://www.statistics.gov.my/index.php?r=column/cthemeByCat&cat=106&bul_id=L0FuTGpIOENZTU5VcG9wUEVqUzAxdz09&menu_id=bThzTHQxN1ZqMVF6a2I4RkZoNDFkQT09

http://www.mas.gov.sg/~/media/MAS/Monetary%20Policy%20and%20Economics/The%20Singapore%20Economy/Inflation%20Monthly/2015/InflationSep15.pdf

http://www.bok.or.kr/contents/total/eng/boardView.action?menuNaviId=634&boardBean.brdid=17062&boardBean.menuid=634&boardBean.rnum=1

http://www.customs.go.jp/toukei/shinbun/trade-st_e/2015/201509ce.xml

http://english.fss.or.kr/fss/en/media/release/view.jsp?bbsid=1289277491315&idx=1445400952056

http://vietnamnews.vn/economy/277434/na-committee-backs-intl-bond-sales.html

http://www.djppr.kemenkeu.go.id/page/load/1341

http://www.djppr.kemenkeu.go.id/page/load/1341

http://www.financeasia.com/News/403001,pboc-steps-out-with-new-london-landmark.aspx

http://www.financeasia.com/News/403002,dongfeng-motors-into-euros.aspx

key developments in asian local currency markets ... · reduced the reserve requirement ratio of...

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