The People’s Republic of China’s (PRC) real gross domestic product (GDP) growth rose to 7.5% year-on-year (y-o-y) in 2Q14 from 7.4% in 1Q14. On a seasonally adjusted quarter-on-quarter (q-o-q) basis, real GDP growth climbed to 2.0% in 2Q14 from 1.5% in 1Q14. For the first half of 2014, real GDP growth stood at 7.4% y-o-y. Meanwhile, industrial production growth accelerated to 9.2% y-o-y in June, while retail sales growth slipped to 12.4%.
In Singapore, economic growth slowed to 2.1% y-o-y in 2Q14 based on advanced estimates released by the Ministry of Trade and Industry (MTI). GDP fell 0.8% in 2Q14 on a seasonally adjusted q-o-q basis. Singapore's non-oil domestic exports (NODX) fell for the second consecutive month, declining 4.6% y-o-y in June. Electronic exports continued to post negative growth, falling 17.4% y-o-y, outweighing the 1.3% gain in non-electronic exports. However, on a seasonally adjusted m-o-m basis, NODX rebounded in June, recording growth of 1.5% after contracting 7.5% in May.
At its monetary policy meeting on 14-15 July, the Bank of Japan (BOJ) announced that it would maintain its monetary easing measures. BOJ stated that the domestic economy is continuing to recover moderately, although it observed a decline in demand prior to the hike in the consumption tax implemented in April. The Republic of Korea’s Producer Price Index (PPI) inched up 0.1% y-o-y in June after remaining unchanged in May. In Malaysia, consumer price inflation picked up slightly to 3.3% y-o-y in June, after easing to 3.2% in May. On a month-on-month (m-o-m) basis, inflation inched up 0.2%.
Hong Kong, China’s seasonally adjusted unemployment rate climbed to 3.2% for the 3-month period ending June from 3.1% for the 3-month period ending May. Meanwhile, the Republic of Korea’s unemployment rate stood at 3.5% in June, down from 3.6% recorded in May, but higher than the 3.1% registered in June 2013.
In the Philippines, personal remittances from overseas Filipinos rose 5.5% y-o-y in May to reach US$2.2 billion. For the first 5 months of the year, remittances totaled US$10.4 billion, up 6.1% y-o-y.
Future Land Development, a Chinese property developer raised US$350 million from the sale of 5-year bonds last week. The bonds were priced to yield 10.5% and carried a coupon of 10.25%. In Singapore, the Housing and Development Board raised SGD800 million from the sale of 10-year bonds last week. The bonds carried a coupon rate of 3.1%.
Government bond yields fell for all tenors in the Republic of Korea and fell for most tenors in Indonesia, Malaysia, and Viet Nam. Yields were mixed in Hong Kong China, Singapore and Thailand. Yields rose for all tenors in the PRC and climbed for most tenors in Japan, and the Philippines. The spread between the 2-year and 10-year bonds narrowed for most markets except for Japan, the Philippines and Viet Nam.