Based on advanced estimates, Singapore’s gross domestic product growth rose to 4.6% year-on-year (y-o-y) in the third quarter (Q3) of 2017 from 2.9% y-o-y in the second quarter (Q2) of 2017. In Q3 2017, the manufacturing sector led the growth with an expansion of 15.5% y-o-y, supported by services-producing industries, which rose 2.6% y-o-y. Compared to Q2 2017, the construction sector posted a slower pace of decline of –6.3% y-o-y in Q3 2017. On a quarter-on-quarter and seasonally adjusted annualized basis, Singapore’s economy grew 6.3% in Q3 2017, improving from a 2.4% expansion in Q2 2017.
On 13 October, the Monetary Authority of Singapore decided to maintain the rate of appreciation of the Singapore dollar nominal effective exchange rate policy band at zero. It also kept steady the policy band width and the level at which it is centered.
Malaysia’s industrial production growth further strengthened in August, rising to 6.8% y-o-y from 6.1% y-o-y in July. It was the highest growth rate since industrial production increased 7.5% y-o-y in March 2015.
The People’s Republic of China’s (PRC) Caixin Composite Purchasing Managers Index fell to 51.4 in September from 52.4 in the prior month, led by weakness in both the manufacturing and services sectors.
Exports from the PRC rose 8.1% y-o-y in September after gaining 5.5% y-o-y in August. Imports into the PRC showed a big boost, growing 18.7% y-o-y versus 13.3% y-o-y in the same period. The PRC reported a trade surplus of USD28.5 billion in September.
Exports from the Philippines increased 9.4% y-o-y in August, amounting to a total of USD5.5 billion. Imports reversed a 3.2% y-o-y drop in July to grow 10.5% y-o-y in August, with the total valued at USD7.9 billion. The Philippines posted a trade deficit of USD2.4 billion in August compared with USD2.1 billion in August 2016.
Japan’s current account surplus widened to JPY2.4 trillion in August from JPY2.3 trillion in July. The decline in the goods account surplus was offset by the higher primary income account surplus and the reversal of the services account to a surplus. In Q2 2017, Japan posted a current account surplus of JPY4.6 trillion.
Singapore’s total retail sales amounted to SGD3.7 billion in August, reflecting a 3.5% y-o-y rise after increasing 1.8% y-o-y in July. Excluding motor vehicles, retail sales rose 3.7% y-o-y in August after gaining 2.2% y-o-y in July.
On 6 October, the Bangko Sentral ng Pilipinas amended its regulations on the issuance of bonds and commercial paper by banks and quasi-banks in order to streamline requirements and provide greater flexibility in tapping the capital market as an alternative funding source. The amendments include the removal of minimum bond features such as the requirement on eligible collateral.
In the emerging East Asian markets last week, local currency government bond yields were mostly down in Hong Kong, China; Malaysia, Philippines, Singapore, Thailand, and Viet Nam. While it rose for all tenors in the Republic of Korea, and for most tenors in the PRC and Indonesia. Yield spreads between 2-year and 10-year maturities narrowed in the PRC, Indonesia, Malaysia, Singapore, and Thailand, while it widened in Hong Kong, China; the Republic of Korea, Philippines, and Viet Nam.