AsianBondsOnline Newsletter (31 October 2011)

To read the full report, data and graphs go to http://www.asianbondsonline.adb.org/newsletters/abowdh20111031.pdf?src=wdh&id=Vd7k9wdkOhnXujvrtQLVzHQl3Ygf9j

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News Highlights - Week of 24 - 28 October 2011

Japan's exports of goods increased 2.4% year-on-year (y-o-y) in September, following a 2.8% increase in August. The growth rate turned positive in August for the first time since the 11 March earthquake and remained in positive territory in September. Merchandise exports from Hong Kong, China fell 3.0% y-o-y in September, following 6.8% growth in August, largely due to declining shipments to the People's Republic of China (PRC) and the United States (US). The Republic of Korea's current account surplus rose to US$3.1 billion in September from US$290 million in August. Also last week, Viet Nam reported export growth in October of 4.5% month-on-month (m-o-m).

*Advance estimates showed the Republic of Korea's real GDP grew 0.7% quarter-on-quarter (q-o-q) and 3.4% y-o-y in 3Q11. Consumer sentiment in the Republic of Korea also improved in October. In September, Singapore's manufacturing output increased 12.8% y-o-y, while retail sales in Japan declined 1.2% y-o-y.

*Singapore's consumer price inflation eased to 5.5% y-o-y in September from 5.7% in August amid price hikes in food, housing, and transport. Viet Nam reported its October estimate for consumer price inflation at 21.6% y-o-y.

*Last week, Tenaga Nasional issued MYR4.85 billion of Islamic bonds and RHB Bank sold MYR250 million of medium-term notes in Malaysia. ICBC Asia priced the first Basel III-compliant CNH subordinated bond worth CNH1.5 billion and Dalian Port priced CNH400 million of 3-year bonds in Hong Kong, China.

*Bank of East Asia priced a US$500 million 10.5-year bond, the Government of Indonesia raised IDR11 trillion from its retail bond sale, the Republic of Korea's KT Corporation sold a total of KRW420 billion worth of dual-tranche bonds, and KDB priced a US$1 billion 5.5-year bond. Finally, PLDT plans to sell PHP5 billion of fixed-rate notes.

*The Bank of Japan (BOJ) decided last week to expand the size of its asset purchase program by JPY5 trillion and kept the uncollateralized overnight call rate between zero and 0.1%. The BOJ revised downward its growth forecast for Japan in fiscal years 2011 and 2012 from an earlier forecast made in July.

*The BOJ and the Bank of Thailand (BOT) announced their collaboration in implementing a THB lending facility, with Japanese government securities serving as collateral, to aid companies in Thailand affected by recent flooding. Also last week, Indonesia passed a bill to create the Financial Services Supervisory Authority (OJK), while Viet Nam released a decree on regulations governing corporate bond issuance.

*The Philippines posted a fiscal deficit of PHP18.5 billion in September after registering a surplus of PHP9.2 billion in the previous month. The fiscal deficit for January-September amounted to PHP53.0 billion.

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

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AsianBondsOnline Newsletter (24 October 2011)

To read the full report, data and graphs go to http://www.asianbondsonline.adb.org/newsletters/abowdh20111024.pdf?src=wdh&id=Vd7k9wdkOhnXujvrtQLVzHQl3Ygf9j

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News Highlights - Week of 17 - 21 October 2011

The People's Republic of China's (PRC) gross domestic product (GDP) grew 9.1% year-on-year (y-o-y) in 3Q11, down from 9.5% growth in 2Q11. This is the slowest quarterly GDP growth rate since 2009. The slowdown was due largely to weaker exports. Domestic demand held up relatively well, buoyed by strong industrial production and retail sales growth.

*The Bank of Thailand decided on 19 October to leave its policy rate unchanged at 3.5%. Bangkok Sentral ng Pilipinas likewise kept its overnight borrowing and lending rates steady last week at 4.5% and 6.5%, respectively.

*Hong Kong, China's consumer price inflation (CPI) accelerated slightly in September to 5.8% y-o-y from 5.7% in August, after a cooling down from a 15-year high in July. Meanwhile, Malaysia's CPI slightly increased to 3.4% y-o-y in September from 3.3% in the previous month.

*In the PRC, the industrial production growth rate rose to 13.8% y-o-y in September from 13.5% in August, while retail sales grew 17.7% y-o-y in September from 17.0% in August. Meanwhile, department store sales in Japan declined for the third consecutive month in September.

*Remittances to the Philippines from overseas workers grew 11.1% y-o-y in August to reach US$1.7 billion. From January through August, cumulative remittances rose 6.9% y-o-y to reach US$13.0 billion.

*Last week, China National Petroleum Corporation (CPNC) priced CNH3 billion of bonds, which were issued through CNPC's offshore entity CNPC Golden Autumn. The Korea National Oil Corporation issued US$1.0 billion worth of 5-year bonds at a yield of 4.137%. The proceeds from the sale will be used to finance overseas oil projects. Malaysia's Khazanah Nasional Bhd. issued its first Islamic CNH bond amounting to CNH500 million through its special purpose vehicle, Danga Capital Bhd. The issue had a tenor of 3 years and was priced at 2.90%.

*The Philippine Bureau of the Treasury issued PHP110 billion worth of Retail Treasury Bonds (RTBs). Of the total amount, PHP54.97 billion were 10-year bonds and PHP55.12 billion were 15-year bonds. The 10- and 15-year RTBs have coupon rates of 5.75% and 6.25%, respectively.

*The PRC's Baosteel was given approval last week to issue CNH bonds in Hong Kong, China. Baosteel is the first non-financial entity from the mainland given approval to issue CNH bonds. Non-financial mainland entities were previously not allowed to issue CNH bond unless they were issued via an offshore vehicle or subsidiary. Meanwhile, Hong Kong, China's property developer Wharf Holdings plans to issue at least SGD100 million worth of bonds with tenors of 7 years and yield guidance at 4.3%-4.4%.

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

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The Way Forward: Measuring the Impact of Short-Term and Structural Growth Drivers on Emerging Market Investing

" The prospect of a potential recession in both the United States and
Europe has recently increased, driving a sharp reduction in global
risk appetite. Traditionally, a slowdown in developed countries - and
a decline in risk appetite - have had an adverse impact on emerging
economies and their asset values. However, in the aftermath of the
2008 global financial crisis, many emerging countries were able to
recover from the economic slowdown more quickly than developed
economies, with the advent of counter-cyclical fiscal and monetary
policies, as well as a dramatic increase in global liquidity. Can this
scenario be repeated?

Authored by Bunt Ghosh, Head of Emerging Market Strategy and Risk,
Anja Hochberg, Head of Investment Strategy for the CIO Office and
Adrian Zürcher, Emerging Market and Equity Strategist for the CIO
Office, the paper discusses how emerging markets - while not immune
from a potential global slowdown - may again have the capacity to
successfully respond to the current market environment with similar
counter-cyclical measures"

Download the full paper at

https://www.credit-suisse.com/asset_management/doc/thought_leadership/201110_emerging_markets_white_paper.pdf

If you can't access the same

Read

https://www.credit-suisse.com/us/asset_management/en/thought_leadership/201110_emerging_markets.jsp

Why is it that people have no problem buying more apples and oranges when they are cheap (and less when they go up in price) but do the exact opposite when it comes to far more significant purchases such as houses and financial assets?

Thanks/BD

AsianBondsOnline Newsletter (17 October 2011)

To read the full report, data and graphs go to http://www.asianbondsonline.adb.org/newsletters/abowdh20111017.pdf?src=wdh&id=Vd7k9wdkOhnXujvrtQLVzHQl3Ygf9j

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News Highlights - Week of 10 - 14 October 2011

Last week the Philippines accepted a total of US$1.3 billion in a buyback of EUR- and US$-denominated bonds. In line with the buyback exercise, the government raised US$50 million through the reopening of its bonds maturing on 23 October 2034 with a coupon of 6.375%. The Bureau of the Treasury also launched its second retail treasury bond offering of the year. On the corporate front, Banco De Oro Unibank Inc. issued PHP6.5 billion worth of unsecured subordinated notes that qualify as Tier 2 capital. Finally, in response to the weakening global economy the Philippine government unveiled a PHP72.1 billion fiscal stimulus package to boost the country's growth through the first half of 2012.

*In the People's Republic of China (PRC), the Ministry of Railways sold CNY10 billion worth of 5-year bonds and CNY10 billion worth of 20-year bonds. These bonds qualify for the 50% reduction in the tax on interest income as recently announced by the National Development Reform Council. The Export-Import Bank of Korea issued KRW170 billion worth of 1-year zero-coupon bonds and Shinhan Bank issued KRW100 billion of 2-year bonds. In Malaysia, Kuala Lumpur Kepong sold MYR300 million worth of 5-year Islamic bonds, while TRIplc issued MYR240 million worth of medium-term notes in several tranches that were guaranteed by Danajamin Nasional.

*Bank Indonesia's Board of Governors cut the benchmark rate by 25 basis points to 6.50% in its meeting on 11 October. The Bank of Korea's Monetary Policy Committee decided to maintain its 7-day repurchase rate at 3.25% in its meeting on 13 October. The Monetary Authority of Singapore announced that it will continue with a policy of modest and gradual appreciation of the Singapore dollar, but will reduce the slope of the policy band to the prevailing level of the nominal effective exchange rate.

*Inflation in the PRC fell in September to 6.1% year-on-year (y-o-y) from 6.2% in August. Growth in the PRC's producer price index also eased to 6.5% y-o-y from 7.3% in August.

*Singapore's economy expanded 5.9% y-o-y in 3Q11, according to advance estimates released last week by the Ministry of Trade and Industry. Meanwhile, Malaysia's industrial production index rose 3.0% y-o-y in August following a revised 0.5% y-o-y decline in July. Also, manufacturing sales posted 10.8% y-o-y growth in August compared with revised 9.5% growth in July.

*The PRC posted a trade surplus of US$14.5 billion in September, the smallest since May, due to weakening demand from developed economies. Export growth fell to 17.1% y-o-y in September from 24.5% in August. In the Philippines, exports fell 15.1% y-o-y to US$4.1 billion in August, the steepest decline since September 2009.

*The M3 money supply in the Philippines grew 9.4% y-o-y to PHP4.3 trillion in August. Liquidity was fueled by the expansion of net foreign assets at a pace of 21.7% y-o-y on sustained inflows from overseas Filipino remittances and portfolio and direct investments.

*Government bond yields fell for all tenors in Indonesia and for most tenors in the PRC, the Republic of Korea, Malaysia, the Philippines, Singapore, Thailand, and Viet Nam. The yield spread between the 2-year and 10-year maturities narrowed for most emerging East Asian markets while it widened for Hong Kong, China; Malaysia, and Thailand.

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AsianBondsOnline Newsletter (17 October 2011)

To read the full report, data and graphs go to http://www.asianbondsonline.adb.org/newsletters/abowdh20111017.pdf?src=wdh&id=Vd7k9wdkOhnXujvrtQLVzHQl3Ygf9j

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News Highlights - Week of 10 - 14 October 2011

Last week the Philippines accepted a total of US$1.3 billion in a buyback of EUR- and US$-denominated bonds. In line with the buyback exercise, the government raised US$50 million through the reopening of its bonds maturing on 23 October 2034 with a coupon of 6.375%. The Bureau of the Treasury also launched its second retail treasury bond offering of the year. On the corporate front, Banco De Oro Unibank Inc. issued PHP6.5 billion worth of unsecured subordinated notes that qualify as Tier 2 capital. Finally, in response to the weakening global economy the Philippine government unveiled a PHP72.1 billion fiscal stimulus package to boost the country's growth through the first half of 2012.

*In the People's Republic of China (PRC), the Ministry of Railways sold CNY10 billion worth of 5-year bonds and CNY10 billion worth of 20-year bonds. These bonds qualify for the 50% reduction in the tax on interest income as recently announced by the National Development Reform Council. The Export-Import Bank of Korea issued KRW170 billion worth of 1-year zero-coupon bonds and Shinhan Bank issued KRW100 billion of 2-year bonds. In Malaysia, Kuala Lumpur Kepong sold MYR300 million worth of 5-year Islamic bonds, while TRIplc issued MYR240 million worth of medium-term notes in several tranches that were guaranteed by Danajamin Nasional.

*Bank Indonesia's Board of Governors cut the benchmark rate by 25 basis points to 6.50% in its meeting on 11 October. The Bank of Korea's Monetary Policy Committee decided to maintain its 7-day repurchase rate at 3.25% in its meeting on 13 October. The Monetary Authority of Singapore announced that it will continue with a policy of modest and gradual appreciation of the Singapore dollar, but will reduce the slope of the policy band to the prevailing level of the nominal effective exchange rate.

*Inflation in the PRC fell in September to 6.1% year-on-year (y-o-y) from 6.2% in August. Growth in the PRC's producer price index also eased to 6.5% y-o-y from 7.3% in August.

*Singapore's economy expanded 5.9% y-o-y in 3Q11, according to advance estimates released last week by the Ministry of Trade and Industry. Meanwhile, Malaysia's industrial production index rose 3.0% y-o-y in August following a revised 0.5% y-o-y decline in July. Also, manufacturing sales posted 10.8% y-o-y growth in August compared with revised 9.5% growth in July.

*The PRC posted a trade surplus of US$14.5 billion in September, the smallest since May, due to weakening demand from developed economies. Export growth fell to 17.1% y-o-y in September from 24.5% in August. In the Philippines, exports fell 15.1% y-o-y to US$4.1 billion in August, the steepest decline since September 2009.

*The M3 money supply in the Philippines grew 9.4% y-o-y to PHP4.3 trillion in August. Liquidity was fueled by the expansion of net foreign assets at a pace of 21.7% y-o-y on sustained inflows from overseas Filipino remittances and portfolio and direct investments.

*Government bond yields fell for all tenors in Indonesia and for most tenors in the PRC, the Republic of Korea, Malaysia, the Philippines, Singapore, Thailand, and Viet Nam. The yield spread between the 2-year and 10-year maturities narrowed for most emerging East Asian markets while it widened for Hong Kong, China; Malaysia, and Thailand.

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Fw: Economy emerging- US

---

From: MANOJ JETHVA <manoj.jethva@gmail.com>

Date: Sun, 16 Oct 2011 16:38:20 +0530

To: manoj.jethva<manoj.jethva@gmail.com>

Subject: Economy emerging- US

WITH REGARDS
MANOJ JETHVA
Research Analyst
CELL : 91-9224668855

 

--

With Regards

Manoj Jethva

+91-9224668855

 

 

The "Book-Cooking" Index Soars To All Time Highs

Everyone has heard of the Big Mac [7]Index, the Misery Index [8], even
the Shoe Thrower [9]Index. But the Book Cooking Index? This latest
addition to the compendium of oddly named yet extremely fascinating
"indices" is based around the statistical irregularity known as
Benford's law, according to which within sets of numbers that span
orders of magnitude, the distribution of first digits is strikingly
regular: numbers beginning in 1 occur about 30% of the time, those
beginning in 2 about 18% of the time, falling to roughly 5% of the
time for the number 9. Specifically, as noted by the keenly observant
Jialan Wang of Washington University in St. Louis, "there are more
numbers in the universe that begin with the digit 1 than 2, or 3, or
4, or 5, or 6, or 7, or 8, or 9. And more numbers that begin with 2
than 3, or 4, and so on. This relationship holds for the lengths of
rivers, the populations of cities, molecular weights of chemicals, and
any number of other categories." The most curious application of this
law resides in the field of corporate fraud, "because deviations from
the law can indicate that a company's books have been manipulated."
Here is where things get interesting for fraudulent corporate America:
the inquisitive Wang "downloaded quarterly accounting data for all
firms in Compustat, the most widely-used dataset in corporate finance
that contains data on over 20,000 firms from SEC filings" and "used a
standard set of 43 variables that comprise the basic components of
corporate balance sheets and income statements." Her results were, in
a word, startling.


Read the Full article at
http://www.zerohedge.com/print/439133

If you can't access the link click here
http://www.zerohedge.com/news/book-cooking-index-soars-all-time-highs

Financial reporting in the oil and gas industry: International Financial Reporting Standards

Source: PwC
Author name: Energy, utilities & mining

Published: 10/13/2011

Summary:
International Financial Reporting Standards (IFRS) provide the basis
for financial reporting to the capital markets in an increasing number
of countries around the world. Over 100 countries either use or are
adopting IFRS. Those companies already on IFRS have their own
challenges as the pace of standard- setting from the International
Accounting Standards Board (IASB) has been intense in recent years
with a constant flow of changes for companies to keep up with.

One of the major challenges of any reporting framework is how best to
implement it in the context of a specific company or industry. IFRS is
a principles based framework and short on industry guidance. PwC looks
at how IFRS is applied in practice by oil and gas companies. This
publication identifies the issues that are unique to the oil and gas
companies industry and includes a number of real life examples to
demonstrate how companies are responding to the various accounting
challenges along the value chain.

Of course, it is not just IFRS that are constantly evolving but also
the operational issues faced by oil and gas companies with the heavy
demand for capital and risks faced by the industry driving more
cooperative working relationships.

We look at some of main developments in this context with a selection
of reporting topics that are of most practical relevance to oil and
gas companies' activities. The new standards on joint arrangements,
consolidated financial statements and disclosure of interests in other
entities will be of particular interest to companies in the oil and
gas sector.

The debate about specific guidance for exploration, evaluation,
development and production of oil and gas continues. This publication
does not describe all IFRSs applicable to oil and gas entities but
focuses on those areas that are of most interest to companies in the
sector.

The ever-changing landscape means that management should conduct
further research and seek specific advice before acting on any of the
more complex matters raised. PwC has a deep level of insight into and
commitment to helping companies in the sector report effectively. For
more information or assistance, please do not hesitate to contact your
local office or one of our specialist oil and gas partners.

Download the report here
http://www.pwc.com/us/en/cfodirect/redirects/100711-oil-ifrs-pdf.html?wt.ac=CFOdirectPDF_Financial-reporting-in-the-oil-and-gas-industry-ifrs

If you can't access then link visit this page
http://cfodirect.pwc.com/CFODirectWeb/Controller.jpf?ContentCode=KOCL-8MCQMQ&rss=true

Thanks/BD

It's Harder Than You Think: The New Reality for Managing Risk and Valuation of OTC Derivatives

Source: PwC
Author name: Financial Services Institute

Published: 10/13/2011

Summary:
The changing landscape in the over-the-counter (OTC) derivatives
market with respect to valuation, capital requirements, and
counterparty and liquidity management poses significant challenges to
many financial services institutions.

Addressing these areas is particularly challenging given the
interconnected nature of these issues and the requirements for
additional operational data not traditionally captured as part of
valuation and risk management processes. Furthermore, in many cases
there will be a need for significant infrastructure enhancements to
support both the flow of information across the organization and the
requirement to perform complex analyses on a frequent and timely
basis.

An integrated response is critical to successfully address the
competing challenges arising from the new regulatory, risk management,
and market forces. Leading institutions have launched a number of
initiatives to address risks relating to OTC derivatives, including:

Refining counterparty credit exposure and credit valuation adjustment
(CVA) measurements to consider the potential future or expected
exposure more completely within the derivatives portfolio.
Incorporating or further refining the impact of collateral on
valuation, counterparty risk measurement, funding costs, and liquidity
management.
Addressing changes to the market arising from evolving regulations,
with a particular focus on regulatory capital and margin requirements
for centrally cleared versus bilaterally settled OTC derivatives.

Download the same at

http://www.pwc.com/us/en/cfodirect/redirects/101211-otc-pdf.html?wt.ac=CFOdirectPDF_Its-Harder-Than-You-Think

If you can't access the link visit this page

http://cfodirect.pwc.com/CFODirectWeb/Controller.jpf?ContentCode=KOCL-8MKJVP&rss=true

AsianBondsOnline Newsletter (10 October 2011)

To read the full report, data and graphs go to http://www.asianbondsonline.adb.org/newsletters/abowdh20111010.pdf?src=wdh&id=Vd7k9wdkOhnXujvrtQLVzHQl3Ygf9j

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News Highlights - Week of 3 - 7 October 2011

Consumer price inflation in Indonesia eased to 4.6% year-on-year (y-o-y) in September as food prices declined. In the Republic of Korea, inflation eased to 4.3% y-o-y in September from 5.3% in August. Consumer price inflation in Thailand also fell in September to 4.0% y-o-y from 4.3% in the previous month due to a slowdown in rising energy prices and transport costs. Meanwhile, inflation in the Philippines inched up to 4.8% y-o-y in September from 4.7% in August.

*The People's Republic of China's (PRC) purchasing managers' index (PMI) for services rebounded to 59.3 in September from 57.3 in August, indicating a recovery in the services sector. In contrast, Singapore's manufacturing activity contracted for the third straight month in September, with the PMI at 48.3 in September.

*Indonesia's export growth eased to 37.1% y-o-y in August for total exports of USD18.8 billion after posting revised 39.5% annual growth in July. Indonesia's imports rose 23.7% y-o-y to USD15.1 billion in August, following revised 28.4% growth in the previous month. The trade surplus in August was USD3.8 billion. Malaysia's merchandise exports posted 10.9% growth in August, higher than the 7.1% export growth rate for July. Meanwhile, imports grew 6.9% y-o-y in August.

*Bank Indonesia (BI) issued new regulations governing export proceeds and foreign debt withdrawals. Under the new policy, exporters will be required to transfer their proceeds from offshore banks into domestic banks within 3 months of the date posted on the Export Declaration Form. Another new BI regulation requires debtors to conduct their foreign borrowing through domestic banks.

*Net foreign investment outflows from the Republic of Korea's LCY bond market were KRW2.5 billion in September. Net inflows in August totaled KRW134.0 billion. The largest net bond investment inflows in September came from Thailand (KRW726.5 billion), the US (KRW619.3 billion), Malaysia (KRW603.8 billion), and the PRC (KRW 400.3 billion).

*Thailand plans to begin targeting headline inflation instead of core inflation to attain greater flexibility in conducting monetary policy.

*The State Bank of Viet Nam raised its refinancing rate, one of its three policy rates, by 100 basis points to 15% effective today. The move is the fifth increase in the refinancing rate for the year.

*In Hong Kong, China, Sinotrans Shipping Inc. priced 3-year CNH bonds with a coupon of 3.3%. In Malaysia, Midciti Resources, which co-owns the Petronas Towers, sold MYR880 million worth of Islamic medium-term notes. The multi-tranche issuance include MYR280 million worth of 3-year notes with a 3.533% annual return, MYR270 million of 5-year notes at 3.919%, MYR240 million of 7-year notes at 4.07%, and MYR90 million of 10-year notes at 4.25%.

*Government bond yields fell last week for all tenors in the Republic of Korea and Thailand; and for most tenors in Hong Kong, China; and Malaysia, while yields rose for most tenors in Indonesia, the Philippines, Singapore and Viet Nam. The PRC market was closed due to the national holiday. Yield spread between 2- and 10- maturities widened only in Malaysia, while spreads narrowed in other emerging East Asian markets except for the PRC.

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Credit spreads indicate a new normal

http://www.zerohedge.com/news/guest-post-credit-spreads-new-normal

Good read

AsianBondsOnline Newsletter (3 October 2011)

To read the full report, data and graphs go to http://www.asianbondsonline.adb.org/newsletters/abowdh20111003.pdf?src=wdh&id=Vd7k9wdkOhnXujvrtQLVzHQl3Ygf9j

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News Highlights - Week of 26 - 30 September 2011

Hong Kong, China's export growth moderated to 6.8% year-on-year (y-o-y) in August from 9.3% in July amid a weaker global economy. In the Republic of Korea, export growth in September eased to 19.6% y-o-y in September from 25.9% in August, while its current account surplus narrowed to USD0.4 billion in August from USD3.8 billion in July. The Philippines' trade deficit in July stood at USD570 million compared with USD183 million in July 2010. Thailand's trade surplus fell to USD705 million in August from USD2.7 billion in July as export growth eased and import growth surged. Viet Nam's exports rose 33.6% y-o-y in September while imports climbed 31.0% y-o-y.

*Viet Nam's cumulative GDP growth rate for January-September was reported at 5.8% y-o-y last week. The People's Republic of China's (PRC) Purchasing Managers' Index improved to 51.2 in September from 50.9 in August. Industrial production in Japan and the Republic of Korea expanded 0.6% and 4.8% y-o-y, respectively, in August. Factory output growth in the Philippines quickened to 6.8% y-o-y in July from 1.2% in June. Singapore's manufacturing output grew 21.7% y-o-y in August, largely due to strong growth in biomedical products.

*Consumer price inflation in Japan stood at 0.2% y-o-y in August, while in Viet Nam inflation reached 22.4% y-o-y in September on the back of a sharp rise in food prices.

*Last week, two banks in the Republic of Korea-Hana Bank and Woori Bank-issued 3-year bonds worth THB8.0 billion and MYR315 million, respectively, while Malaysia's AmIslamic Bank priced MYR600 million of 10-year subordinated notes.

*LCY corporate bond issuance in the Republic of Korea rose 27.1% month-on-month (m-o-m) in August, led by strong issuance growth in bank debentures and asset-backed securities.

*China Railway Construction announced last week its plan to issue CNY7.5 billion worth of medium-term notes. Shanghai Pudong Development Bank aims to sell CNY18.4 billion of subordinated debt. Indonesia plans to sell retail bonds with tenors of 3 years on 26 October. Krungthai Card intends to raise THB7.0 billion from a dual-tranche bond sale on 10 October. Thailand's Central Pattana aims to issue THB2 billion of 5-, 7-, and 10-year bonds.

*The PRC banking sector's assets grew 16.6% y-o-y to CNY104.4 trillion, while bank liabilities rose 16.0% y-o-y to CNY97.8 trillion in August.

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

*Finally, some of the more interesting economic data due this week include consumer price inflation for Republic of Korea and the Philippines; export growth and trade balance for Malaysia; money supply for Japan and Indonesia; and foreign reserves for Hong Kong, China and the Philippines.

*****************************************************************************