Consumer price inflation moderated in Indonesia, the Republic of Korea, and Thailand on a year-on-year (y-o-y) basis, while accelerating on a month-on-month level. In Indonesia, consumer price inflation eased to 3.7% y-o-y in January from 3.8% in December. However, on a m-o-m basis, consumer prices rose 0.8% in January compared with 0.6% a month earlier. Consumer price inflation in the Republic of Korea moderated to 3.4% y-o-y in January from 4.2% in December. Between December and January, consumer prices increased 0.5%. In Thailand, consumer price inflation eased to 3.4% y-o-y in January from 3.5% in December. On a m-o-m basis, consumer prices rose 0.4% in January after falling 0.5% in December.
Bank Negara Malaysia (BNM) decided to keep its overnight policy rate at 3.0% during its Monetary Policy Meeting on 31 January. Bangko Sentral ng Pilipinas cuts its reserve requirement ratio for banks from 21% to 18%.
The manufacturing PMI for the People's Republic of China (PRC) for January came in at 50.5, slightly higher than the 50.3 for December 2011, reflecting an apparent improvement in domestic demand and export orders. Hong Kong, China's gross domestic product (GDP) growth rate slowed to 3.0% y-o-y in 4Q11 from 4.3% in 3Q11. Growth in 4Q11 eased mainly due to slower increases in consumption spending and the export of services.
BNM and the Bank of Thailand (BOT) signed a Memorandum of Understanding to enter into a cross-border collateral arrangement to improve liquidity facility measures for financial institutions operating in both countries. Also, BNM issued new liberalization measures to enhance competitiveness and develop domestic financial markets.
Net foreign bond investment into the Republic of Korea in January stood at KRW1.6 trillion, according to Financial Supervisory Service (FSS) data.
Last week, Wharf Holdings priced US$600 million of 5-year bonds. Hutchison Whampoa issued US$1.0 billion via a tap on its existing bonds. Henderson Land priced SGD200 million of 4-year bonds at a coupon of 3.65%. Mandiri Tunas Finance raised IDR200 billion from the sale of 3-year medium-term notes (MTNs) and Woori Bank raised THB5 billion from a triple-tranche bond sale. Korea Development Bank raised MYR500 million from a dual-tranche bond sale. Finally, Lotte Shopping priced a CNH750 million 3-year bond in Hong Kong, China.
Guangxi Railway Investment Group Company plans to issue CNY800 million worth of 5-year MTNs. The Hong Kong Monetary Authority (HKMA) issued its tentative auction schedule for government bonds to be issued under the Institutional Bond Issuance Programme (HKSAR bonds) in March-August 2012. A total of HKD8 billion worth of bonds is scheduled to be auctioned. Kasikornbank will be offering a 10-year subordinated bond worth THB22 billion. Meanwhile, America Movil and Hitachi Capital both plan to issue CNH bonds.
Government bond yields fell for all tenors in Indonesia-due to a declining inflation rate and recent upgrades of its sovereign rating-and for most tenors in Hong Kong, China; Republic of Korea; Malaysia; the Philippines; and Singapore. Yields rose for most tenors in Viet Nam, while yield movements were mixed in the PRC and Thailand. Yield spreads between 2- and 10-year tenors widened in the PRC, Thailand, and Viet Nam, while spreads narrowed in most other emerging Asian markets.