21 May 2012 asianbondsonline.adb.org

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Key Developments in Asian Local Currency Markets

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apan's gross domestic product (GDP) expanded at a higher-than-expected annualized rate of 4.1% in 1Q12, buoyed by both public investment and private sector consumption. Public investment was boosted by post-earthquake reconstruction works, while government subsidies for the purchase of fuel-efficient cars encouraged private spending. Meanwhile, Singapore's GDP grew 1.6% year-on-year (y-o-y) in 1Q12 from the revised 3.6% growth posted in 4Q11. Thailand's GDP grew 0.3% y-o-y in 1Q12 compared to an 8.9% decline in 4Q11.

Last week in the People's Republic of China (PRC), Jiangsu Taicang Port issued CNY800 million of bonds. In Malaysia, Encorp Systembilt raised MYR1.575 billion from the sale of multi-tranche sukuk. Telekom Malaysia issued MYR250 million worth of Islamic Medium-Term Notes. In the Philippines, Globe Telecom is offering PHP10 billion of bonds from 21-25 May. United Coconut Planters Bank (UCPB) also sold PHP1.85 billion of long-term negotiable certificates of time deposit last week. Finally, Viet Nam Development Bank (VDB) sold a total of VND1.4 trillion in 3- and 5-year government-guaranteed bonds.

Last week, Korea Eximbank raised JPY100 billion from a triple-tranche samurai bond sale, and Viet Nam's Sacombank announced its plan to raise US$200 million in overseas markets via a 5-year dollar bond in the second or the third quarter of this year.

Meanwhile, the Ministry of Finance of the PRC announced that it had given permission to the cities of Shanghai and Shenzhen, as well as the provinces of Zhejiang and Guangdong, to continue bond issuance trials. The pilot program allows the specified local governments to directly issue their own bonds (subject to quotas).

In March, overseas Filipinos' remittances to the Philippines reached US$1.7 billion to post 5.0% y-o-y growth. Cumulative remittances for 1Q12 surged 5.4% y-o-y to US$4.8 billion. Singapore's non-oil domestic exports posted an 8.3% y-o-y increase in April, reversing the 4.3% decline registered in March.

Retail sales in the Republic of Korea fell 3.4% y-o-y in April, after rising 1.6% in the previous month, as sales of grocery, clothing, and miscellaneous items waned. Meanwhile, Singapore's retail sales rose 9.1% y-o-y in March. Motorcycle sales in Indonesia fell 12.4% y-o-y to 617,508 units in April, following a 12.8% drop in March.

In Japan, machinery orders declined 2.8% on a monthly basis in March due to a strengthening yen and slowing global markets. Factory production in the Philippines continued to expand in March, posting the fastest rate of growth in 12 months at 8.2% y-o-y, driven by production of furniture and fixtures, footwear, and wearing apparel.

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

Data releases this week include (i) consumer price inflation for Hong Kong, China; Japan; Malaysia; Singapore; and Viet Nam; (ii) GDP for Malaysia; (iii) policy rate of Bank of Japan and (iv) trade data for Hong Kong, China; Japan; the Philippines; and Viet Nam.

J Asia Bond Monitor April 2012 read more

10-Year Selected LCY Government Security Yields Close of 18 May 2012 basis point change from

Markets Latest Closing Previous Day* Previous Week* 1-Jan-12*

Selected Benchmark Yield Curves - Local Currency Government Bonds

Policy Rate versus Inflation Rate Charts

Government Security Yields

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

2- versus 10- Year Yield Spread Chart

US 1.72 2.55 -11.50 -15.36EU 1.43 1.30 -9.00 -40.30Japan 0.83 -2.00 -2.30 -15.80PRC 3.39 0.00 -15.00 -5.00Hong Kong, China 1.01 -5.30 -8.10 -45.10India 8.53 1.20 -3.80 -4.10Indones ia 6.61 0.80 35.60 57.80Malays ia 3.57 -0.10 -0.50 -13.40Korea, Rep. of 3.71 -3.00 -4.00 -8.00Philippines 5.49 3.08 9.89 40.25Singapore 1.47 0.00 -2.00 -16.00Thailand 3.70 -4.70 -13.80 41.50Viet Nam 10.28 0.00 -8.40 -221.70

-11.50

-9.00

-2.30

-15.00

-8.10

-3.80

35.60

-0.50

-4.00

9.89

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-13.80

-8.40

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Summary Text of News Articles

Japan Posts Higher-than-Expected GDP Growth in 1Q12 while Singapore's Growth Eases ....................................................................................................................... Japan's gross domestic product (GDP) in 1Q12 expanded 1.0% quarter-on-quarter (q-o-q), compared with a forecast of 0.9%, boosted by public investment, private consumption, and household spending. Public investment in 1Q12 rose 23.6% q-o-q, while private and household consumption each grew 4.4% q-o-q. Private consumption jumped on government subsidies for purchases of fuel-efficient cars, while public investment rose on post-earthquake reconstruction spending. On a year-on-year (y-o-y) basis, Japan's GDP grew 2.7% in 1Q12 after declining in all quarters in 2011. On an annualized basis, Japan's GDP grew 4.1% in 1Q12, up from only 0.1% in 4Q11.

According to final data released by the Ministry of Trade and Industry (MTI) on 20 May, Singapore's GDP grew 1.6% y-o-y in 1Q12, which was down from revised growth of 3.6% in 4Q11. The manufacturing sector posted a revised 1.0% y-o-y contraction in 1Q12, while the construction and service sectors grew 7.7% and 2.2% y-o-y, respectively. For full-year 2012, MTI is maintaining a GDP growth forecast of 1.0%-3.0%.

For the historical trend of Japan's real GDP growth, refer to this link: http://asianbondsonline.adb.org/japan/data/macroeconomic_credit.php

For the historical trend of Singapore's real GDP growth, refer to this link: http://asianbondsonline.adb.org/singapore/data/macroeconomic_credit.php

Jiangsu Taicang Port Issues CNY800 Million of 7-Year Bonds; Encorp Systembilt Raises MYR1.575 Billion of Sukuk; Telekom Malaysia Sells MYR250 Million of IMTNs;

The Philippines' Globe Telecom Offers PHP10 Billion of Bonds; UCPB Sells PHP1.85 Billion of LTNCDs; VDB Raises VND1.4 Trillion Selling Government-Guaranteed Bonds .......................................................................................................................

Jiangsu Taicang Port last week issued CNY800 million worth of 7-year bonds. The bonds have a coupon of 7.66%. The issuer said that proceeds will be used for bank loan repayment and working capital replenishment.

In Malaysia, Encorp Systembilt raised MYR1.575 billion from the sale of multi-tranched sukuk (Islamic bonds) last week. The sukuk, rated AA2 by RAM ratings, were issued with maturities of 1-16 years and carry a profit rate of 3.55%-5.52% annually. Meanwhile, Telekom Malaysia issued MYR250 million worth of 10-year Islamic Medium-Term Notes (IMTNs), which were rated AAA by RAM Ratings and carry a profit rate of 4.0% per annum.

In the Philippines, Globe Telecom, a joint venture of Ayala Corporation and Singapore Telecom, is offering PHP10 billion of 5- and 7-year fixed rate bonds on 21-25 May. Interest rates were set at 5.75% and 6% for 5-year and 7-year bonds, respectively. Globe may upsize the issue to PHP15 billion depending on market conditions. The Securities and Exchange Commission (SEC) approved the proposed bond sale last week. The bond carries an issue rating of PRS Aaa. Proceeds from the bond sale will be used partly to fund the company's network modernization and IT transformation program. The program requires an investment of US$790 million, of which US$570 million will be spent in 2012/13. The bookrunners for the sale are BPI Capital Corp., HSBC, and RCBC Capital Corp.

United Coconut Planter Bank (UCPB) issued PHP1.85 billion of long-term negotiable certificates of time deposit (LTNCDs). The LTNCDs carry a coupon of 5.875% per annum, payable quarterly, and a maturity of 5 years and 3 months. Proceeds of the LTNCDs will used to sustain growth in the UCPB's loan portfolio and cover the bank's maturing obligations. LTNCDs are non-preterminable, but are tradable in the secondary market.

Viet Nam Development Bank (VDB) sold VND1.4 trillion worth of 3- and 5-year government-guaranteed bonds last week on the Hanoi Stock Exchange. The 3-year tenor (VND600 billion) carries a yield of 9.5% per annum and the 5-year tenor (VND800 billion) carries a yield of 9.8% per annum. Thus far in 2012, VDB has organized four tenders and raised a total of VND14.4 trillion worth of government-backed bonds.

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Summary Text of News Articles

Korea Eximbank Raises JPY100 Billion from Triple-Tranche Samurai Bond Sale; Sacombank Plans to Raise Dollar Bonds in 2012 .......................................................................................................................

Korea Eximbank raised JPY100 billion from a triple-tranche samurai bond sale last week. It priced a 2-year bond worth JPY51.4 billion at a coupon rate of 1.11%, a JPY41.2 billion 3-year bond at 1.25%, and a 5-year bond amounting to JPY7.4 billion at 1.38%.

Last week, Viet Nam's Sacombank announced its plan to raise US$200 million in overseas markets via a 5-year dollar bond in the second or third quarter of this year. The announcement follows an issuance earlier in the month by VietinBank-Viet Nam's largest partially private lender by asset value and the first bank to issue a dollar bond in overseas markets worth US$250 million. Sacombank said the proceeds will go to its banking business and the bond will be listed on the Singapore Stock Exchange.

The PRC Extends Pilot Program for Local Government Bond Issuance ....................................................................................................................... The Ministry of Finance of the People's Republic of China (PRC) announced last week that it had given permission to the cities of Shanghai and Shenzhen, as well as the provinces of Zhejiang and Guangdong, to continue their bond issuance trials. The pilot program allows the specified local governments to directly issue their own local government bonds. According to the Ministry of Finance, the issuances are subject to quotas.

Overseas Remittances to the Philippines up 5.0% y-o-y in March; Singapore's NODX Surges 8.3% y-o-y in April .......................................................................................................................

Overseas remittances to the Philippines reached US$1.7 billion in March, up 5.0% y-o-y. Cumulative remittances in 1Q12 surged 5.4% y-o-y to US$4.8 billion. The growth in remittances was attributed to the sustained demand for Filipino manpower and continued expansion of banking services across the globe. The top sources of remittances in 1Q12 were the United States (US); Canada; United Kingdom (UK); United Arab Emirates (UAE); Germany; Italy; and Hong Kong, China.

Singapore's non-oil domestic exports (NODX) posted an 8.3% y-o-y increase in April, a reversal from the 4.3% decline registered in March. Electronic exports grew 1.0% y-o-y, while non-electronic shipments increased 12.0%, due to increased exports of pharmaceuticals, specialized machinery, and petrochemicals. Shipments to all major markets, except the US and European Union, increased. On a month-on-month (m-o-m) and seasonally adjusted basis, NODX increased 13.0% in April after the previous month's 17.0% contraction.

For the historical trend of the Philippines' remittances growth, refer to this link: http://asianbondsonline.adb.org/philippines/data/macroeconomic_credit.php

Retail Sales Fall in the Republic of Korea in April and Rise in Singapore in March; Motorcycle Sales Slow in Indonesia in April .......................................................................................................................

Retail sales in the Republic of Korea dropped on an annual basis in April as sales of grocery, clothing, and miscellaneous items waned. Department store sales fell 3.4% y-o-y in April after rising 1.6% in the previous month. Discount store sales contracted 2.4% y-o-y in April, following 3.2% growth in March.

Singapore's retail sales rose 9.1% y-o-y in March. Excluding motor vehicles, retail sales grew 6.5% y-o-y in March. Retailers of motor vehicles posted a 17.8% y-o-y increase in sales, while telecommunications apparatus and computers and petrol service stations posted double-digit sales growth of 11.3% and 10.8% y-o-y, respectively. Meanwhile, medical goods and toiletries, watches and jewelry, food and beverages, supermarkets, wearing apparel and footwear, recreational goods, department stores, furniture and household equipment, and provision and sundry shops posted growth rates of 4.3%-9.7%.

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Summary Text of News Articles

Retail Sales Fall in the Republic of Korea in April and Rise in Singapore in March; Motorcycle Sales Slow in Indonesia in April (cont…) .......................................................................................................................

Motorcycles sales in Indonesia fell 12.4% y-o-y to 617,508 units in April, following a 12.8% drop in March. These declines may indicate a slowdown in economic growth as motorcycle sales are considered a leading indicator for economic performance in Indonesia. Motorcycle sales are expected to slow further with the implementation of new regulations on housing and auto loans, introduced by Bank Indonesia (BI) and the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK), that are intended to curb excessive lending. Effective 1 June, consumers seeking loans will be required to pay 25% of the cost as down payment, compared with 5% at present.

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

For the historical trend of Singapore's retail sales growth, refer to this link: http://asianbondsonline.adb.org/singapore/data/macroeconomic_credit.php

Machinery Orders in Japan Decline in March; Factory Output in the Philippines Continues to Grow in March .......................................................................................................................

Machinery orders in Japan fell 2.8% m-o-m in March compared with a market forecast of a 3.5% decline. (The government of Japan has also forecast orders climbing 2.5% in the 3 months ending 30 June.) Machinery orders were expected to fall in March due to a strengthening yen and slowing global markets. The less-than-expected decline in March and the positive outlook for machine orders in 2Q12 signals that corporate spending can support the country's economic growth even as spending for reconstruction works fades. In addition, positive growth rates for machinery orders were recorded in January and February at 3.4% and 2.8% m-o-m, respectively.

Factory production in the Philippines continued to be buoyant in March, posting the fastest rate of growth in 12 months. Factory production volume rose 8.2% y-o-y in March, up from February's revised growth of 6.5%. The sectors leading the expansion in production were furniture and fixtures (95.1%), footwear and wearing apparel (94.6%), tobacco products (28.4%), electrical machinery (28.0%), publishing and printing (17.3%), food manufacturing (16.1%), wood and wood products (13.7%), beverages (11.3%), and rubber and plastic products (10.4%). This was offset by the decline in some sectors to include basic metal products (-22.0%) and fabricated metal products (-16.2%).

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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 18 May 2012

Close of 18 May 2012

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-12*

US 0.08 -1.52 -1.52 6.61EU 0.06 2.20 -2.80 12.50Japan 0.10 0.00 0.00 0.00PRC 2.39 -3.00 -32.00 -38.00Hong Kong, China 0.12 0.00 0.00 -10.00India 8.38 0.00 1.00 -14.00Malaysia 3.03 0.00 0.10 3.00Korea, Rep. of 3.33 -1.00 -1.00 -3.00Philippines 2.17 -0.50 -0.59 79.50Singapore 0.28 0.00 2.00 -9.00Thailand 3.02 -0.29 -2.72 -10.15

basis point change fromLatest ClosingMarkets

-1.52

-2.80

0.00

-32.00

0.00

1.00

0.10

-1.00

-0.59

2.00

-2.72

PreviousDay*

PreviousWeek* 1-Jan-12*

US 1.72 2.55 -11.50 -15.36EU 1.43 1.30 -9.00 -40.30Japan 0.83 -2.00 -2.30 -15.80PRC 3.39 0.00 -15.00 -5.00Hong Kong, China 1.01 -5.30 -8.10 -45.10India 8.53 1.20 -3.80 -4.10Indonesia 6.61 0.80 35.60 57.80Malaysia 3.57 -0.10 -0.50 -13.40Korea, Rep. of 3.71 -3.00 -4.00 -8.00Philippines 5.49 3.08 9.89 40.25Singapore 1.47 0.00 -2.00 -16.00Thailand 3.70 -4.70 -13.80 41.50Viet Nam 10.28 0.00 -8.40 -221.70

basis point change fromLatest ClosingMarkets

-11.50

-9.00

-2.30

-15.00

-8.10

-3.80

35.60

-0.50

-4.00

9.89

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-13.80

-8.40

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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.

JapanEUUS

Viet NamThailandSingapore

PhilippinesMalaysiaKorea, Republic of

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

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18-May-12 11-May-12 04-May-12

3.25

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18-May-12 11-May-12 04-May-12

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ld (%

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Time to maturity (years)18-May-12 11-May-12 04-May-12

8.58.89.09.39.59.8

10.010.310.510.811.0

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

Yie

ld (%

)

Time to maturity (years)18-May-12 11-May-12 04-May-12

0.0

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Yie

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Time to maturity (years)18-May-12 11-May-12 04-May-12

0.0

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1.8

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2.3

0 4 8 12 16 20 24 28 32 36 40

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Time to maturity (years)18-May-12 11-May-12 04-May-12

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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 50 100 150 200 250 300

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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

3.40

1-year Lending Rate

6.56

-4

-2

0

2

4

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Jan-06 Oct-06 Aug-07 May-08 Mar-09 Dec-09 Oct-10 Jul-11 May-12

Inflation Rate 4.90

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-4

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2

4

6

8

Jan-06 Oct-06 Aug-07 May-08 Mar-09 Dec-09 Oct-10 Jul-11 May-12

Inflation Rate

7.23

Repurchase Cut-off Yield

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-2

0

2

4

6

8

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Jan-06 Oct-06 Aug-07 May-08 Mar-09 Dec-09 Oct-10 Jul-11 May-12

Inflation Rate

2.10

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c

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Inflation Rate

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Repo Rate

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2

4

6

8

10

12

Jan-06 Oct-06 Aug-07 May-08 Mar-09 Dec-09 Oct-10 Jul-11 May-12

Inflation Rate

2.47

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3.00

-6

-4

-2

0

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4

6

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Jan-06 Oct-06 Aug-07 May-08 Mar-09 Dec-09 Oct-10 Jul-11 May-12

Inflation Rate

10.54

Prime Lending Rate

9.00

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3

6

9

12

15

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21

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Jan-06 Oct-06 Aug-07 May-08 Mar-09 Dec-09 Oct-10 Jul-11 May-12

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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 USD currency and based on sovereign bonds Source: Thomson Reuters

Mid

spre

ad in

bas

is po

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Source: ADB-OREI staff calculations based on Bloomberg data.

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F eb-07 No v-07 Au g -08 May-09 F eb -10 No v-10 Au g-11 May-1 2

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S ingapore

Kore a , Re p. of

V ie t Na m

0

200

400

600

800

1,000

1,200

1,400

Dec-07 Aug-08 M ay-09 Feb-10 Nov-10 Aug-11 M ay-12

China , P e ople 's Re p. of

Hong Kong, China

Indone s ia

Kore a , Re p. of

J apa n

Ma la ys ia

P hilippine s

Tha ila nd

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Tip: Zoom-in on the table using the Acrobat zoom tool Selected Debt Security Issuances 14 - 18 May 2012)

CN 16-May 50-year Treasury Bonds 4.25 28.00 28.00HK 15-May 91-day Exchange Fund Bills 0.13 25.68 25.68

182-day Exchange Fund Bills 0.15 9.00 9.00ID 14-May 10-year Treasury Bonds 6.30 500.00

15-year Treasury Bonds 6.69 275.00JP 15-May 40-year Japan Government Bonds 2.04 2.00 400.00 452.90

16-May 1-year Treasury Discount Bills 0.10 2,500.00 2,499.8417-May 3-month Treasury Discount Bills 0.10 6,000.00 6,039.77

5-year Japan Government Bonds 0.22 0.20 2,500.00 2,499.19KR 14-May 91-day Monetary Stabilization Bonds 3.38 1,200.00 1,220.00

5-year Treasury Bonds 3.50 1,750.00 1,750.00MY 14-May 63-day BNM Islamic Notes 3.05 0.50 0.50

126-day BNM Islamic Notes 3.06 0.50 0.50210-day BNM Notes 3.05 1.00 1.00210-day BNM Notes 3.04 1.00 1.0010.5-year Government Investment Issues 3.70 4.50 4.50

15-May 63-day BNM Islamic Notes 3.05 1.00 0.50126-day BNM Islamic Notes 3.06 1.00 0.50210-day BNM Notes 3.04 1.00 1.00

PH 15-May 364-day Treasury Bills 2.52 3.50 2.40SG 14-May 91-day Treasury Bills 0.20 4.00 4.00TH 15-May 28-day BOT Bills 2.93 28.00 28.00

91-day BOT Bills 3.00 22.00 22.00182-day BOT Bills 3.10 18.00 18.00

16-May 5-year Government Bonds 3.56 3.25 16.00 16.0049-year Government Bonds 4.43 4.85 7.00 5.17

17-May 3-year BOT Bonds 3.57 3.05 30.00 30.00Sources:  Local market sources and Bloomberg, LP.

6,000.00

C o u p o n (in % )

A m o u n t O ffered L C Y B illio n s

A m o u n t Is s u ed L C Y B illio n sMark ets

A u c tio n D ate T y p e o f S ec u rity

A v erag e Y ield (% )

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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 (22 - 28 May 2012)

Source: AsianBondsOnline, Bloomberg LP, and Reuters.

PhilippinesImportsy-o-y, %MAR

05/25 02/11: 21.9%03/11: 21.8% 01/12: -3.2 %02/12: 4.9%

Philippine imports expanded 4.9% y-o-y in February after experiencing a contraction of 3.2% in January.

ThailandForeign ReservesUS$ billionMAY

05/25 04/11: 189.8505/11: 186.1703/12: 179.2004/12: 178.46

Thailand’s foreign reserves declined to US$178.5 billion at end-April from US$179.2 billion at end-March.

Consumer price inf lation in Viet Nam eased for the 8th straight month to 10.5% y-o-y in April from 14.2% in March.

JapanCPIy-o-y, %APR

05/25 03/11: -0.5%04/11: -0.4% 02/12: 0.3%03/12: 0.5 %

Consumer price inf lation in Japan crept higher to 0.5% y-o-y in March from 0.3% in February.

02/11: 12.3%03/11: 13.9% 03/12: 14.2%04/12: 10.5 %

Viet NamExports YTDy-o-y,%MAY

05/24-05/31 02/11: 40.3%03/11: 33.7%03/12: 23.6%04/12: 22.1%

Viet Nam’s cumulative exports in the f irst 4 months of the year grew 22.1% y-o-y, follow ing 23.6% y-o-y grow th in 1Q12.

Viet NamCPIy-o-y, %MAY

05/24

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

Japanese exports surged 5.9% y-o-y in March, reversing February’s decline of 2.7%.

JapanExportsy-o-y, %APR

05/23 03/11: -2.3%04/11: -12.4 %02/12: -2.7%03/12: 5.9%

The consumer price index (CPI) in Hong Kong, China’s rose 4.9% year-on-year (y-o-y) in March versus 4.7% in February.

The Bank of Japan (BOJ) has kept its target rate steady betw een zero and 0.1% since October 2010.

Hong Kong, ChinaCPI y-o-y, %APR

05/22 03/11: 4.4%04/11: 4.6% 02/12: 4.7%03/12: 4.9%04/11: 0.10%05/11: 0.10%03/12: 0.10%04/12: 0.10%

05/23JapanBOJ Target Rate%MAY 23

05/24 03/11: 21.5%04/11: 4.1%02/12: 14.0%03/12: -6.8%

Hong Kong, ChinaExports y-o-y, %APR

SingaporeCPIy-o-y, %APR

Malaysia’s consumer price inf lation eased slightly to 2.1% y-o-y in March from 2.2% in February.

MalaysiaCPIy-o-y, %APR

05/23 4Q10: 4.8%1Q11: 5.2% 3Q11: 5.8%4Q11: 5.2%

MalaysiaGDPy-o-y%1Q12

Malaysia’s gross domestic product (GDP) grow th slow ed to 5.2% y-o-y in 4Q11, dow n from the 5.8% grow th recorded in 3Q11.

05/23 03/11: 3.0%04/11: 3.2% 02/12: 2.2%03/12: 2.1%

05/23 03/11: 5.0%04/11: 4.5%02/12: 4.6%03/12: 5.2%

Consumer price inf lation in Singapore rose to 5.2% y-o-y in March from 4.6% in February.

Hong Kong, China’s exports fell by 6.8% y-o-y in March compared w ith grow th of 14.0% in February, due to w eakened demand from advanced and emerging market economies.

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DEBT HIGHLIGHTSASIANBONDSONLINE

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News Articles: Sources for Further Reading

Japan Posts Higher-than-Expected GDP Growth in 1Q12 while Singapore’s Growth Eases

• Development of Real GDP (Quarterly), seasonally adjusted series

Cabinet Office, Government of Japan (17 May 2012)

• 2012 GDP Growth Forecast Maintained at 1.0 to 3.0 Per Cent

Ministry of Trade and Industry Singapore (17 May 2012)

• S'pore Q1 GDP up 1.6% on-year Channel News Asia (17 May 2012)

Jiangsu Taicang Port Issues CNY800 Million of 7-Year Bonds; Encorp Systembilt Raises MYR1.575 Billion of Sukuk; Telekom Malaysia Sells MYR250 Million of IMTNs; The Philippines’ Globe Telecom Offers PHP10 Billion of Bonds; UCPB Sells PHP1.85 Billion of LTNCDs; VDB Raises VND1.4 Trillion Selling Government-Guaranteed Bonds

• Jiangsu Taicang Port issues RMB 800 mln bonds China Knowledge (17 May 2012)

• Encorp refinances sukuk IFR Asia (19 May 2012)

• Globe gets SEC nod for P10-billion bond issue Philippine Star (14 May 2012)

• UCPB launches P1.85-billion long-term negotiable CDs Philippine Star (14 May 2012)

• VDB raises 14.4tr dong worth of government-guaranteed bonds so far

Intellasia (17 May 2012)

Korea Eximbank Raises JPY100 Billion from Triple-Tranche Samurai Bond Sale; Sacombank Plans to Raise Dollar Bonds in 2012

• BONDS: Kexim Delivers Largest Korean Samurai IFR Asia (17 May 2012)

• Vietnam's Sacombank plans $200 mln dollar bond Reuters (15 May 2012)

The PRC Extends Pilot Program for Local Government Bond Issuance

• Local gov'ts to continue bond issuance trials China Daily (15 May 2012)

Overseas Remittances to the Philippines up 5.0% y-o-y in March; Singapore’s NODX Surges 8.3% y-o-y in April

• OF Remittances Continue to Trend Upwards; March 2012 Transfers Reach US$1.7 Billion Bangko Sentral ng Pilipinas (15 May 2011)

• Singapore's External Trade – April 2012 International Enterprise Singapore (17 May 2012)

Retail Sales Fall in the Republic of Korea in April and Rise in Singapore in March; Motorcycle Sales Slow in Indonesia in April

• S. Korean Retail Sales Shrink in April YONHAP News (17 May 2011)

• Retail Sales Index Food & Beverage Services Index March 2012

Singapore Department of Statistics (15 May 2011)

• Indonesia April domestic motorbike sales fall 12.4% Reuters (13 May 2011)

• Inflation Fears Crimp Motorcycle Sales in Indonesia Jakarta Globe (16 May 2011)

Machinery Orders in Japan Decline in March; Factory Output in the Philippines Continues to Grow in March

• Japanese Machinery Orders Fall 2.8% From Previous Month (Update 1)

Bloomberg (15 May 2012)

• MONTHLY INTEGRATED SURVEY OF SELECTED INDUSTRIES (MISSI) - MARCH 2012

National Statistics Office (Philippines) (15 May 2012)

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