28 January 2013 asianbondsonline.adb.org

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Key Developments in Asian Local Currency Markets

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Asia Bond Monitor November 2012 read more

10-Year Selected LCY Government Security Yields Close of 25 January 2013 basis point change from

Markets Latest Closing Previous Day* Previous Week* 1-Jan-13*

Selected Benchmark Yield Curves — Local Currency Government

Policy Rate versus Inflation Rate Charts

Government Security Yields

Credit Default Swap Spreads and Exchange Rate IndexesSelected Debt Security Issuances Selected Asia Data Releases

2- versus 10- Year Yield Spread Chart

ong Kong, China's composite consumer price index in December climbed 3.7% year-on-year (y-o-y) for the second consecutive month. In Japan, consumer prices fell 0.1% y-o-y in December. Consumer price inflation in Malaysia moderated to 1.2% y-o-y in December from 1.3% in November. In Singapore, consumer price inflation accelerated to 4.3% y-o-y in December from 3.6% in November. Finally, Viet Nam's inflation rate rose

to 7.1% y-o-y in January from 6.8% in December.

The Bank of Japan decided last week to (i) introduce a price stability target of 2.0%, based on the y-o-y rate of increase in the consumer price index; (ii) maintain the uncollateralized overnight call rate at between zero and 0.1%; and (iii) introduce an open-ended asset purchasing method starting in January 2014. In the Philippines, the central bank decided to keep the overnight lending and borrowing rates steady at 5.50% and 3.50%, respectively, and to set the interest rates on the Special Deposit Account (SDA) facility at 3.00%, regardless of tenor.

The Republic of Korea's real gross domestic product (GDP) grew 0.4% quarter-on-quarter (q-o-q) and 1.5% y-o-y in 4Q12, based on advance estimates of The Bank of Korea.

Hong Kong, China's merchandise exports rose 14.4% y-o-y in December. Merchandise exports from Japan slipped 5.8% y-o-y in December. Philippine import growth fell to 2.2% y-o-y in November from 4.3% in October.

In the Republic of Korea, department store sales slipped 0.2% y-o-y and discount store sales dropped 5.0% in December.

In Singapore, the Housing and Development Board (HDB) priced SGD1.2 billion worth of 5-year bonds at a coupon rate of 1.23% last week, while Tata Communications priced SGD250 million worth of 3-year bonds carrying a coupon of 4.25%.

Powerlong Real Estate, based in the People's Republic of China (PRC), sold US$250 million worth of 5-year bonds carrying an 11.25% coupon last week. Meanwhile, Longfor Properties priced US$500 million of 10-year bonds and Fosun International priced US$400 million of 7-year bonds. Shinhan Bank priced US$350 million worth of 5.5-year bonds. Sime Darby, based in Malaysia, priced US$800 million worth of dual-tranche sukuk (Islamic bonds) last week.

The outstanding debt of the Government of the Philippines climbed 9.1% y-o-y to PHP5.4 trillion in November.

Malaysia's RAM Ratings launched its global and Association of Southeast Asian Nations (ASEAN) rating scales last week. The Bond Research Institute was established in Indonesia earlier this month to produce research and analysis that will support further development of Indonesia's capital markets. Furthermore, Indonesia's Financial Services Authority announced plans to publish its ratings on the quality of corporate governance of Indonesian firms.

Government bond yields fell last week for most tenors in the PRC, Indonesia, the Republic of Korea, and the Philippines. Yields rose for all tenors in Singapore and for most tenors in Malaysia, Thailand, and Viet Nam. Yield movements were mixed in Hong Kong, China. Yield spreads between 2- and 10-year tenors widened in Indonesia, Malaysia, Singapore, and Thailand, while spreads narrowed in the PRC, the Philippines, Viet Nam, and Hong Kong, China.

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US 1.95 9.89 10.71 19.13EU 1.64 6.40 8.10 32.00Japan 0.72 -0.60 -3.40 -7.10PRC 3.58 0.00 -2.00 -1.00Hong Kong, China 0.98 3.60 -3.30 38.10India 7.88 0.00 1.20 -11.50Indonesia 5.20 0.20 -6.20 1.00Korea, Rep. of 2.99 -1.00 -3.00 -17.00Malaysia 3.48 0.00 1.00 -2.30Philippines 4.12 -14.53 -21.39 -3.45Singapore 1.36 -2.00 2.00 6.00Thailand 3.70 -0.40 0.60 18.70Viet Nam 10.20 0.00 0.00 0.00

10.71

8.10

-3.40

-2.00

-3.30

1.20

-6.20

-3.00

1.00

-21.39

2.00

0.60

0.00

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Summary Text of News Articles

Consumer Price Inflation Holds Steady in Hong Kong, China; Remains Negative in Japan; Moderates in Malaysia; and Accelerates in Singapore and Viet Nam .......................................................................................................................

Hong Kong, China's composite consumer price index rose 3.7% year-on-year (y-o-y) in December for the second consecutive month. By category, the largest increase in prices came from housing-related expenses, which rose 5.1%, followed by food, which rose 4.1%. According to the Government of the Special Administrative Region of Hong Kong, China, inflation is likely to be contained in the short-term due to weakness in the economy and only moderate price increases in imported products.

In Japan, consumer prices decreased for the seventh consecutive month in December, falling 0.1% y-o-y.

Consumer price inflation in Malaysia eased to 1.2% y-o-y in December, compared with 1.3% in November. On a month-on-month (m-o-m) basis, consumer price inflation remained flat. For the full-year 2012, inflation rose to 1.6% y-o-y as price indices for all main groups rose except for clothing and footwear, and communications.

In Singapore, consumer price inflation climbed to 4.3% y-o-y in December, from 3.6% in November, due mainly to higher accommodation and transportation costs. All major group indices rose during the month except for communications. Between November and December, inflation rose 0.7%. The inflation rate for full-year 2012 was recorded at 4.6%.

Viet Nam's consumer price inflation rose to 7.1% y-o-y in January from 6.8% in December. The hike was driven by prices for medicine and health care, which surged 55.6% y-o-y, followed by education, which increased 17.3%. On a m-o-m basis, consumer prices climbed 1.3%.

For inflation rate trends in Hong Kong, China, refer to this link: http://asianbondsonline.adb.org/hongkong/data/marketwatch.php?code=policy_rate_and_inflation_trends

For inflation rate trends in Japan, refer to this link: http://asianbondsonline.adb.org/japan/data/marketwatch.php?code=policy_rate_and_inflation_trends

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

For inflation rate trends in Viet Nam, refer to this link: http://asianbondsonline.adb.org/vietnam/data/marketwatch.php?code=policy_rate_and_inflation_trends

BOJ Sets Price Stability Target at 2.0%, Keeps Policy Rate Steady, Introduces an Open-Ended Asset Purchasing Program;

The Philippines Keeps Policy Rates Steady ....................................................................................................................... The Policy Board of the Bank of Japan (BOJ) decided on 22 January to set the price stability target at 2.0% in terms of the y-o-y rate of increase in the consumer price index (CPI). The BOJ will also encourage the uncollateralized overnight call rate to remain between zero and 0.1%. The BOJ decided to introduce an open-ended asset purchasing program. This program will start in January 2014 and purchase a certain amount of financial assets every month without setting any termination date.

In the Philippines, the Bangko Sentral ng Pilipinas (BSP) chose to hold its key policy rates-the overnight borrowing and lending rates-steady at 3.50% and 5.50%, respectively. Reserve requirement ratios were also kept unchanged. Instead, rates on special deposit accounts with the BSP were reduced to 3.0%, regardless of the tenor. The special deposit accounts have tenors of 7 days, 14 days, and 1 month.

For policy rate trends in Japan, refer to this link: http://asianbondsonline.adb.org/japan/data/marketwatch.php?code=policy_rate_and_inflation_trends

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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Summary Text of News Articles

Real GDP of the Republic of Korea Grows 0.4% q-o-q and 1.5% y-o-y in 4Q12 ....................................................................................................................... The Republic of Korea's real gross domestic product (GDP) grew 0.4% quarter-on-quarter (q-o-q) and 1.5% year-on-year (y-o-y) in 4Q12, based on advance estimates of The Bank of Korea. For the full-year 2012, real GDP growth stood at 2.0%. On a y-o-y basis, private consumption expenditure increased 2.8%, government spending rose 3.1%, total exports of goods and services expanded 4.0%, and total imports of goods and services climbed 3.1%. In contrast, gross fixed capital formation shrank 4.1% y-o-y, as construction investment and facilities investment dropped by 4.1% and 5.1%, respectively. On the production side, the electricity, gas, and water supply sector grew 6.7% y-o-y; the services sector rose 2.2%; and the manufacturing sector expanded 1.3%. Meanwhile, the agriculture, forestry, and fishing sector contracted 2.2% y-o-y; and the construction sector shrank 2.5%.

For statistics on the Republic of Korea's real GDP growth, refer to this link: http://asianbondsonline.adb.org/korea/data/macroeconomic_credit.php

The Republic of Korea's Retail Sales Weaken in December; Singapore's Industrial Production Falls 0.6% y-o-y in December .......................................................................................................................

Retail sales in the Republic of Korea weakened in December. Department store sales slipped 0.2% y-o-y and discount store sales dropped 5.0%. In Singapore, manufacturing output fell 0.6% y-o-y in December following a 2.9% gain in November. On a seasonally-adjusted m-o-m basis, manufacturing output rose 5.4% in December.

For statistics on the Republic of Korea's department store sales, refer to this link: http://asianbondsonline.adb.org/korea/data/macroeconomic_credit.php

Merchandise Export Growth Accelerates in Hong Kong, China and Falls in Japan in December; Merchandise Import Growth Eases in the Philippines in November .......................................................................................................................

Hong Kong, China's merchandise export growth rose to 14.4% y-o-y in December from 10.5% in November. Merchandise imports rose 11.9% y-o-y in December after a 9.0% increase in November. Growth in exports was driven primarily by demand from Asia, with exports to the region as a whole rising 14.8% y-o-y in December. Demand from other countries was also strong, with exports to the United Kingdom (UK) rising 16.7% y-o-y and exports to the United States (US) increasing 12.8% in December.

Merchandise exports from Japan slipped 5.8% y-o-y in December after declining 4.1% in November. On the other hand, Japan's merchandise import growth rose to 1.9% y-o-y in December from 0.9% in November.

Philippine import growth fell to 2.2% y-o-y in November from 4.3% in October. The slower import growth was mostly due to declining electronics imports, which fell 8.8% in November.

For statistics on Japan's export and import growth, refer to this link: http://asianbondsonline.adb.org/japan/data/macroeconomic_credit.php

For statistics on the Philippines' import growth, refer to this link: http://asianbondsonline.adb.org/philippines/data/macroeconomic_credit.php

HDB Prices SGD1.2 Billion 5-Year Bond; Tata Communications Prices SGD250 Million 3-Year Bond .......................................................................................................................

Singapore's Housing and Development Board (HDB) priced SGD1.2 billion worth of 5-year bonds at a coupon rate of 1.23% last week. Tata Communications, based in India, priced SGD250 million worth of 3-year bonds carrying a coupon of 4.25% in Singapore last week.

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Summary Text of News Articles

Powerlong Real Estate Issues US$250 Million 5-Year Bond; Longfor Properties Price US$500 Million 10-Year Bond;

Fosun International Prices US$400 Million 7-Year Bond; Sime Darby Prices US$800 Million Dual-Tranche Sukuk;

Shinhan Bank Prices US$350 Million 5.5-Year Bond ....................................................................................................................... Powerlong Real Estate Holdings, based in the PRC, sold US$250 million worth of 5-year bonds carrying a coupon rate of 11.25%. By investor type, asset managers bought 47% of the bonds, private banks, 37%; other banks, 14%; and other investors, 2%. Investors in Asia purchased 84% of the total, while the remaining 16% went to Europe. Also in the PRC, Longfor Properties priced US$500 million worth of 10-year (non-call 5) Reg S bonds at a 6.625% yield, while Fosun International priced US$400 million of 7-year (non-call 4) Reg S bonds at a coupon rate of 6.875%.

Sime Darby, based in Malaysia, priced US$800 million worth of dual-tranche sukuk (Islamic bond) issue last week. The tranches amounted to US$400 million each. The 5-year tranche offers a coupon of 2.053%, while the 10-year deal carries a coupon of 3.29%. Investors in Asia bought 83% of the 5-year tranche, while the remaining 17% went to Europe and the Middle East. Meanwhile, 53% of the 10-year tranche was purchased by Asian investors, while 43% went to investors in Europe and the Middle East.

Shinhan Bank, based in the Republic of Korea, priced US$350 million worth of 5.5-year bonds at a coupon rate of 1.875% last week.

The Philippines' Outstanding Debt Climbs 9.1% y-o-y in November ....................................................................................................................... The outstanding debt of the Government of the Philippines grew 9.1% y-o-y in November to PHP5.38 trillion, mostly due to an increase in domestic borrowing. Specifically, domestic debt grew 19.5%, while foreign debt declined 5.1%. Domestic debt comprised 63% of the total outstanding debt of the Philippines at end-November. On a m-o-m basis, outstanding debt grew 0.4% in November.

RAM Ratings Launches Global and ASEAN Ratings Scale; Bond Research Institute Established in Indonesia;

Indonesia's OJK Plans to Release Ratings on Corporate Governance ....................................................................................................................... Last week, RAM Ratings Services Bhd. launched its global and Association of Southeast Asian Nations (ASEAN) ratings scales. The scale will enable RAM to benchmark ratings against global and regional peers. The Credit Guarantee and Investment Facility (CGIF) was the first institution to be given a global and ASEAN rating of AAA by RAM.

In Indonesia, the Bond Research Institute (BondRI) was established earlier this month with a mission to produce research and analysis on bonds and fixed income that will help improve Indonesia's capital market competitiveness.

Indonesia's supervisory bond agency, the Financial Services Authority (OJK), plans to publish its ratings of the quality of corporate governance of Indonesian firms. OJK plans to provide ratings for the 50 largest listed companies this year. Among the criteria to be evaluated are how a company treats minority shareholders and the role played by its board of directors.

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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

Close of 25 January 2013

Close of 25 January 2013

EU = European Union, LCY =local currency, PRC = People’s Republic of China, US = United States. Source: Based on data from Bloomberg, LP.

PreviousDay*

PreviousWeek* 1-Jan-13*

US 0.07 -0.51 0.00 3.04EU 0.02 0.00 -0.20 -0.50Japan 0.10 0.00 0.10 -0.50PRC 2.70 0.00 0.00 -15.00Hong Kong, China 0.08 0.00 3.00 3.00India 7.97 0.00 1.00 -16.00Korea, Rep. of 2.70 0.00 0.00 -4.00Malaysia 3.03 0.00 -0.20 -0.50Philippines 0.13 0.00 0.00 -17.50Singapore 0.24 0.00 1.00 1.00Thailand 2.71 0.09 -1.09 -4.91

basis point change fromLatest ClosingMarkets

0.00

-0.20

0.10

0.00

3.00

1.00

0.00

-0.20

0.00

1.00

-1.09

PreviousDay*

PreviousWeek* 1-Jan-13*

US 1.95 9.89 10.71 19.13EU 1.64 6.40 8.10 32.00Japan 0.72 -0.60 -3.40 -7.10PRC 3.58 0.00 -2.00 -1.00Hong Kong, China 0.98 3.60 -3.30 38.10India 7.88 0.00 1.20 -11.50Indonesia 5.20 0.20 -6.20 1.00Korea, Rep. of 2.99 -1.00 -3.00 -17.00Malaysia 3.48 0.00 1.00 -2.30Philippines 4.12 -14.53 -21.39 -3.45Singapore 1.36 -2.00 2.00 6.00Thailand 3.70 -0.40 0.60 18.70Viet Nam 10.20 0.00 0.00 0.00

Marketsbasis point change from

Latest Closing

10.71

8.10

-3.40

-2.00

-3.30

1.20

-6.20

-3.00

1.00

-21.39

2.00

0.60

0.00

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Tip: Zoom-in on the table using the Acrobat zoom tool Benchmark Yield Curves – LCY Government Bonds

Indonesia

EU = European Union, LCY = local currency US = United States. Source: Based on data from Bloomberg.

Viet NamThailandSingapore

PhilippinesMalaysiaKorea, Republic of

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

JapanEUUS

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0.0

0.3

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1.5

1.8

2.0

2.3

0 4 8 12 16 20 24 28 32 36 40

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2.5

2.8

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3.3

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2.5

2.8

3.0

3.3

3.5

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

Yie

ld (%

)

Time to maturity (years)25-Jan-13 18-Jan-13 11-Jan-13

2.8

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3.4

3.6

3.8

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Yie

ld (%

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25-Jan-13 18-Jan-13 11-Jan-13

0.0

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Yie

ld (%

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25-Jan-13 18-Jan-13 11-Jan-13

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0.5

1.0

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0 3 6 9 12 15 18 21

Yie

ld (%

)

Time to maturity (years)25-Jan-13 18-Jan-13 11-Jan-13

2.7

3.0

3.2

3.5

3.7

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4.2

0 2 4 6 8 10 12 14 16

Yie

ld (%

)

Time to maturity (years)25-Jan-13 18-Jan-13 11-Jan-13

7.5

8.0

8.5

9.0

9.5

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10.5

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

Yie

ld (%

)

Time to maturity (years)25-Jan-13 18-Jan-13 11-Jan-13

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Tip: Zoom-in on the table using the Acrobat zoom tool 2- versus 10- Year Yield Spread Chart

EU = European Union, US = United States. Source: Based on data from Bloomberg LP.

0 50 100 150 200 250

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Tip: Zoom-in on the table using the Acrobat zoom tool Policy Rate versus Inflation Rate

Philippines Thailand

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

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. Source: Bloomberg LP.

The Reserve Bank of India uses the repurchase (repo) cut-off yield as its policy rate. Source: Bloomberg LP.

Indonesia Korea, Republic of Malaysia

Bank Indonesia uses its reference interest rate (BI rate) as its policy rate. Source: Bloomberg LP.

The Bank of Korea shifted its policy rate from the overnight repurchase (repo) rate to the 7-day repo rate in March 2008. Source: Bloomberg LP.

Bank Negara Malaysia uses the overnight policy rate (OPR) as its policy rate. Source: Bloomberg LP.

Viet Nam

Bangko Sentral uses the Philippine overnight reverse repurchase agreement rate as one of its policy instruments. Source: Bloomberg LP.

The Bank of Thailand replaced the 14-day repurchase rate with the 1-day repurchase rate in January 2007 as its policy rate. Source: Bloomberg LP.

The State Bank of Viet Nam uses a benchmark prime lending rate as its policy rate. Source: Bloomberg LP.

Inflation Rate

2.50

1-year Lending Rate

6.00

-4

-2

0

2

4

6

8

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Jan-07 Oct-07 Jul-08 Apr-09 Jan-10 Oct-10 Jul-11 Apr-12 Jan-13

Inflation Rate

3.70

HKMA Base Rate

0.50

-4

-2

0

2

4

6

8

Jan-07 Oct-07 Jul-08 Apr-09 Jan-10 Oct-10 Jul-11 Apr-12 Jan-13

Inflation Rate

7.18

Repurchase Cut-off Yield

8.00

-2

0

2

4

6

8

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Inflation Rate

4.30

5.75

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BI Rate

Inflation Rate1.40

7-Day Repo Rate

2.75

0

2

4

6

8

Jan-07 Oct-07 Jul-08 Apr-09 Jan-10 Oct-10 Jul-11 Apr-12 Jan-13

Inflation Rate

1.20

Overnight Policy Rate

3.00

-4

-2

0

2

4

6

8

10

Jan-07 Oct-07 Jul-08 Apr-09 Jan-10 Oct-10 Jul-11 Apr-12 Jan-13

Inflation Rate

2.90

Overnight Reverse

Repo Rate

3.50

0

2

4

6

8

10

12

Jan-07 Oct-07 Jul-08 Apr-09 Jan-10 Oct-10 Jul-11 Apr-12 Jan-13

Inflation Rate

3.63

1-Day Repo Rate

2.75

-6

-4

-2

0

2

4

6

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Jan-07 Oct-07 Jul-08 Apr-09 Jan-10 Oct-10 Jul-11 Apr-12 Jan-13

Inflation Rate

7.10

Prime Lending Rate

9.00

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3

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Jan-07 Oct-07 Jul-08 Apr-09 Jan-10 Oct-10 Jul-11 Apr-12 Jan-13

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

Mid

spre

ad in

bas

is po

ints

Source: ADB-Office of Regional Economic Integration staff calculations based on Bloomberg data.

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Tip: Zoom-in on the table using the Acrobat zoom tool Selected Debt Security Issuances (21 – 25 January 2013)

CN 23-Jan 7-year Treasury Bond 3.42 30.00 30.00HK 22-Jan 91-day Exchange Fund Bills 0.07 31.34 31.34

182-day Day Exchange Fund Bills 0.10 11.00 11.00JP 23-Jan 2-month Treasury Discount Bills 0.10 2,500.00 2,499.90

24-Jan 3-month Treasury Discount Bills 0.10 5,700.00 5,739.8420-year Japanese Government Bonds 1.76 1,200.00 1,199.50

KR 21-Jan 91-day Monetary Stabilization Bonds 2.74 1,200.00 1,220.00182-day Monetary Stabilization Bonds 2.73 500.00 550.0010-year Korea Treasury Bonds 3.01 3.75 1,500.00 1,500.00

MY 21-Jan 63-day BNM Islamic Notes 3.03 2.00 2.00126-day BNM Islamic Notes 3.04 1.50 1.50210-day BNM Notes 2.96 1.00 1.00

PH 23-Jan 7-year Fixed Rate Treasury Notes 3.88 25.00 25.00SG 21-Jan 3-month Treasury Bills 0.14 2.00 2.00

6-month Treasury Bills 0.22 2.00 2.00TH 22-Jan 28-day BOT Bills 2.62 25.00 25.00

91-day BOT Bills 2.67 28.00 28.00182-day BOT Bills 2.75 25.00 25.00

23-Jan 29-year Government Bonds 4.24 3.78 8.00 8.00VN 22-Jan 364-day Treasury Bills 7.65 2,000.00 2,000.00

23-Jan 91-day SBV Bills 6.48 3,000.00 3,000.00182-day SBV Bills 7.20 2,366.00 2,366.00

24-Jan 91-day SBV Bills 6.50 2,569.00 2,569.00182-day SBV Bills 6.50 4,586.00 4,586.00

BNM = Bank Negara Malaysia, BOT = Bank of Thailand, LCY = local currency, SBV = State Bank of Vietnam.Sources: Local market sources and Bloomberg, LP.

A m o u n t Is s u e d (L C Y billio n)M a r k e ts

A u c tio n D a te T y p e o f S e c u r ity

A v e r a g e Y ie ld (% )

C o u p o n (% )

A m o u n t O ffe r e d (L C Y billio n)

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DEBT HIGHLIGHTSASIANBONDSONLINE

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Tip: Zoom-in on the table using the Acrobat zoom tool Selected Asia Data Releases (29 January – 4 February 2013)

Source: AsianBondsOnline , Bloomberg LP, and Reuters.

ThailandConsumer Price Inflationy-o-y, %JAN

02/01 12/11: 3.5%01/12: 3.4%11/12: 2.7%12/12: 3.6%

Consumer price inf lation in Thailand accelerated to 3.6% y-o-y in December from 2.7% in November.

Republic of KoreaConsumer Price Inflationy-o-y, %JAN

02/01 12/11: 4.2%01/12: 3.4%11/12: 1.6%12/12: 1.4%

Consumer price inf lation in the Republic of Korea moderated to 1.4% y-o-y in December from 1.6% in November.

Republic of KoreaExportsy-o-y, %JAN

02/01 12/11: 8.2%01/12: –7.3%11/12: 3.9%12/12: –5.7%

The Republic of Korea’s merchandise exports fell 5.7% y-o-y in December after grow ing 3.9% in November.

R e le a s e D a te R e c e n t T r e n d sE c o n o m y a n d V a r ia b le H is to r ic a l D a ta

Japan’s industrial production contracted for the sixth consecutive month in November, falling 5.5% y-o-y.

JapanIndustrial Productiony-o-y, %DEC

01/31 11/11: –2.9%12/11: –3.0%10/12: –4.5%11/12: –5.5%

The Republic of Korea’s current account surplus soared to US$6.9 billion in November from US$5.8 billion in October.

Retail sales in Hong Kong, China increased 9.5% year-on-year (y-o-y) in November, follow ing 3.9% grow th in October.

Republic of KoreaCurrent Account BalanceUS$ millionDEC

01/30 11/11: 4,564.612/11: 2,809.310/12: 5,781.711/12: 6,877.711/11: 23.4%12/11: 23.5%10/12: 3.9%11/12: 9.5%

01/31Hong Kong, ChinaRetail Salesy-o-y, %DEC

Thailand recorded a current account surplus in November of US$392 million after posting a deficit of US$199 million in October.

Bank Negara Malaysia has kept its benchmark rate at 3.00% since May 2011. MalaysiaOvernight Rate%31 JAN

01/31 3Q11: 3.2%4Q11: 4.0%2Q12: 6.0%3Q12: 7.1%

PhilippinesReal GDPy-o-y, %4Q12

The Philippines recorded real gross domestic product (GDP) grow th of 7.1% y-o-y in 4Q12.

01/31 12/11: 3.00%01/12: 3.00%11/12: 3.00%12/12: 3.00%

ThailandCurrent Account BalanceUS$ millionDEC

01/31 11/11: –12112/11: 58410/12: –19911/12: 392

ThailandExportsy-o-y, %DEC

01/31 11/11: –12.2%12/11: –6.1%10/12: 14.4%11/12: 27.1%

Thailand’s merchandise export grow th accelerated to 27.1% y-o-y in November from 14.4% in October.

People’s Republic of ChinaPMI ManufacturingIndexJAN

02/01 12/11: 50.301/12: 50.511/12: 50.612/12: 50.6

The purchasing managers’ index (PMI) for the manufacturing sector in the People’s Republic of China (PRC) remained unchanged in December from the previous month at 50.6.

IndonesiaConsumer Price Inflationy-o-y, %JAN

02/01 12/11: 3.79%01/12: 3.65%11/12: 4.32%12/12: 4.30%

Consumer price inf lation in Indonesia eased marginally to 4.30% y-o-y in December, compared w ith 4.32% in November.

IndonesiaExportsy-o-y, %DEC

02/01 11/11: 10.2%12/11: 1.5%10/12: −9.6%11/12: −4.6%

Indonesian exports continued to contract for the eighth consecutive month in November, falling 4.6% y-o-y.

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DEBT HIGHLIGHTSASIANBONDSONLINE

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News Articles: Sources for Further Reading

Consumer Price Inflation Holds Steady in Hong Kong, China; Remains Negative in Japan; Moderates in Malaysia; and Accelerates in Singapore and Viet Nam

• Consumer Price Indices for December 2012 Census and Statistics Department (21 January 2013)

• Consumer Price Index Malaysia December 2012 Department of Statistics, Malaysia (23 January 2013)

• Singapore Consumer Price Index Singapore Statistics (23 January 2013)

• Consumer price index, Gold and USD price indexes, whole country, January 2013

General Statistics Office of Viet Nam (24 January 2013)

BOJ Sets Price Stability Target at 2.0%, Keeps Policy Rate Steady, Introduces an Open-Ended Asset Purchasing Program; The Philippines Keeps Policy Rates Steady

• Introduction of the "Price Stability Target" and the "Open-Ended Asset Purchasing Method"

Bank of Japan (22 January 2013)

• Monetary Board Maintains Policy Rates, Fine Tunes SDA Facility

Bangko Sentral ng Pilipinas (24 January 2013)

Real GDP of the Republic of Korea Grows 0.4% q-o-q and 1.5% y-o-y in 4Q12

• Real Gross Domestic Product: Q4 and Annual 2012 The Bank of Korea (24 January 2013)

The Republic of Korea’s Retail Sales Weaken in December; Singapore’s Industrial Production Falls 0.6% y-o-y in December

• Retail Sales Figures for 2012 Ministry of Knowledge Economy (24 January 2013)

• Monthly Manufacturing Performance Department of Statistics Singapore (25 January 2013)

Merchandise Export Growth Accelerates in Hong Kong, China and Falls in Japan in December; Merchandise Import Growth Eases in the Philippines in November

• External merchandise trade statistics for December 2012 Census and Statistics Department (24 January 2013)

• Trade Statistics Value of Exports and Imports December 2012 (Provisional)

Ministry of Finance (24 January 2013)

HDB Prices SGD1.2 Billion 5-Year Bond; Tata Communications Prices SGD250 Million 3-Year BondImport Growth Eases in the Philippines in November

• BONDS: HBD increases Sing-dollar 5-yr to S$1.2 bn IFRAsia (24 January 2013)

• BONDS: TataCom markets three-year Sing-dollar bond IFRAsia (24 January 2013)

Merchandise Powerlong Real Estate Issues US$250 Million 5-Year Bond; Longfor Properties Price US$500 Million 10-Year Bond; Fosun International Prices US$400 Million 7-Year Bond; Sime Darby Prices US$800 Million Dual-Tranche Sukuk; Shinhan Bank Prices US$350 Million 5.5-Year Bond

• Powerlong bonds garner sufficient demand amid oversupply The Asset (22 January 2013)

• BONDS: Fosun prices almost flat to curve weakness IFRAsia (24 January 2013)

• BONDS: Long for prints, despite resistance to pricing IFRAsia (23 January 2013)

• Sime Darby locks in cheap funding with sukuk offering The Asset (24 January 2013)

• BONDS: Shinhan Global underlines new G3 pricing approach IFRAsia (24 January 2013)

The Philippines’ Outstanding Debt Climbs 9.1% y-o-y in November

• Debt climbs to P5.381 trillion BusinessWorld (22 January 2013)

RAM Ratings Launches Global and ASEAN Ratings Scale; Bond Research Institute Established in Indonesia; Indonesia’s OJK Plans to Release Ratings on Corporate Governance

• RAM launches global and Asean rating scales The Edge (21 January 2013)

• BondRI Establishes Bond Education Bisnis Indonesia (22 January 2013)

• Indonesia Plans Scorecards to Boost Corporate Governance Bloomberg LP (22 January 2013)

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