All posts by stekunan

India’s IOB Offers First U.S. Dollar Bonds From Asia in a Week

Indian Overseas Bank is marketing the first dollar-denominated bonds from the Asia-Pacific region in a week after yields on Indian debt in the U.S. currency tumbled to a 12-month low. Bond risk rose in Asia.

Indian Overseas Bank is offering 5 1/2-year notes yielding about 430 basis points more than similar-maturity Treasuries, according to a person familiar with the matter who asked not to be identified because the details are private. Yields on dollar debt from Indian borrowers dropped to 5.6 percent on Aug. 10, the least since Aug. 19 last year, according to a JPMorgan Chase & Co. index.

Dollar bond sales last week dipped to the least since the five days ending July 6, with no sales after China Petrochemical Corp., Sound Global Ltd. and Westpac Banking Corp. raised $1.9 billion on Aug. 6, according to data compiled by Bloomberg. Issuance in Asia is expected to remain patchy this week as August is traditionally a quieter month with some investors on holidays, according to Jefferies Group Inc.

“Dollar bond sales will probably be sporadic this week,” said Brayan Lai, a Singapore-based desk analyst in emerging market credit trading at Jefferies. “There’s a large pipeline from Indian banks but public demand is low as there’s concern about their future growth.”

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by stekunan on August 13, 2012  •  Permalink
Posted in Asia, Bank, Inbound Investment, India
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Posted by stekunan on August 13, 2012

https://theasiancenturyreport.wordpress.com/2012/08/13/indias-iob-offers-first-u-s-dollar-bonds-from-asia-in-a-week/

Palm Oil Lobby Seeks Relief With Lower Tax Rate

Kuala Lumpur. The Palm Oil Refiners Association of Malaysia and Malaysian Estate Owners’ Association — representing both upstream and downstream stakeholders — suggest that the government should lower the current 23 percent crude palm oil tax to 8 percent instead of increasing the duty-free CPO export quota.

This proposal is seen as a win-win solution to the present palm oil dilemma.

Recently, the Plantation Industries and Commodities Ministry announced the export of another two million metric tons of duty-free CPO by the end of next month — a move that many refiners see as throwing good money after bad. This is because this decision will result in the government forgoing some 4 billion rinngit ($1.2 billion) in tax collection by allowing the export of up to 5.5 million tons of duty-free CPO.

On Thursday, a refiner and the MEOA expressed their consensus to stem the losses and solve the current dilemma. As palm oil prices continued to fall in the last four months, the refiner said it was naive to assume that by pushing palm oil exports, stock levels would come down and this would prompt palm oil prices to jump.

“Stock management is one thing, but there’s also the strengthening of the US dollar,” said the refiner, who spoke on condition of anonymity.

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by stekunan on August 13, 2012  •  Permalink
Posted in Asia, Business, Industry, Regulation, Stock
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Posted by stekunan on August 13, 2012

https://theasiancenturyreport.wordpress.com/2012/08/13/palm-oil-lobby-seeks-relief-with-lower-tax-rate/

Indonesian Bonds Go From Region’s Worst to Best: Southeast Asia

Indonesian bonds have gone from the worst to best performers in Asia this quarter as a more stable rupiah lured funds such as HSBC Global Asset Management and Pioneer Investments to Southeast Asia’s highest yields.

Local-currency notes have gained 4.1 percent since June 30 after being the only debt from the 10 major Asian emerging markets to post a negative return in the second quarter, according to an HSBC Holdings Plc index. Their average yield of 6.2 percent is the highest in Southeast Asia and compares with 5.2 percent in the Philippines and 3.5 percent in Malaysia.

The rupiah weakened 2.8 percent against the dollar in the second quarter as Indonesia posted trade deficits in each of the three months, the first shortfall since July 2010. Since then, the currency has lost just 0.8 percent and foreign funds have added 13.7 trillion rupiah ($1.4 billion) to their debt holdings, finance ministry data show. The more stable rupiah is helping to revive interest in the country’s notes, said Gordon Rodrigues, investment director at HSBC Global in Hong Kong.

“We are cautiously positive on Indonesia,” Rodrigues, who helps oversee $32 billion of Asian fixed-income assets, said in an interview on Aug. 7. “In a more stable environment for bonds, being underweight for a long period of time on Indonesia, which is a relatively high-yielding country, tends to hurt you.”

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by stekunan on August 13, 2012  •  Permalink
Posted in Asia, Bank, Business, Indonesia, Market
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Posted by stekunan on August 13, 2012

https://theasiancenturyreport.wordpress.com/2012/08/13/indonesian-bonds-go-from-regions-worst-to-best-southeast-asia/

Stock Markets Slump Worldwide Amid China and Japan Slowdown

LONDON/HONG KONG — World stock markets fell Monday after a slowdown in Japan’s growth gave investors another reason to worry about the health of the global economy.

Japan’s economy grew at a slower-than-expected annual rate of 1.4 percent in April-June as Europe’s debt crisis and the strong yen weighed on the country’s powerhouse export sector. That was a sharp drop from a revised 5.5 percent in the previous quarter. The news comes on top a slew of reports out of Asia that point to a region losing momentum.

On Friday, China released weaker-than-expected trade data. Export growth in July plunged to just 1 percent from the previous month’s 11.3 percent, well below forecasts of about 5 percent. Meanwhile, Hong Kong and Singapore, both Asian financial centers that are highly exposed to global trade, reported weak second-quarter growth. And India’s industrial output fell a worse-than-expected 1.8 percent in June amid a manufacturing and investment slump.

European stocks opened lower. Britain’s FTSE 100 lost 0.3 percent to 5,826.91. Germany’s DAX lost 0.1 percent to 6,935.06 while France’s CAC-40 lost 0.3 percent to 3,426.26. Wall Street futures signaled a lower opening. Dow Jones Industrial Futures fell 0.2 percent to 13,148 and S&P 500 futures shed 0.3 percent to 1,398.70.

Asian stock markets closed mostly lower. Japan’s Nikkei 225 fell marginally to close at 8,885.15, with traders taking Japan’s growth figures in stride.

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by stekunan on August 13, 2012  •  Permalink
Posted in Asia, Asian conferences, Finance, Japan, Market, Stock
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Posted by stekunan on August 13, 2012

https://theasiancenturyreport.wordpress.com/2012/08/13/stock-markets-slump-worldwide-amid-china-and-japan-slowdown/

Cross-Strait Pact: New Day for Taiwanese Investors?

For Taiwanese companies, mainland China has long been both boon and bane: Factories and other investments in the mainland are crucial to their success, yet their rights in legal disputes there have been somewhat hazy.

Beijing tried to ease Taiwanese businesses’ concerns last week by signing a new investor protection agreement with Taipei. It lays out avenues for resolving disputes between Taiwanese investors and mainland companies and government entities.

But as with many things in China, the value of this agreement for Taiwanese will depend more on Beijing’s implementation than the wording. The new dispute resolution mechanism also requires the Taiwanese and mainland companies to first agree on an arbitration method, which analysts say may diminishes its practical value.

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by stekunan on August 13, 2012  •  Permalink
Posted in Asia, Business, China, Market, Stock
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Posted by stekunan on August 13, 2012

https://theasiancenturyreport.wordpress.com/2012/08/13/cross-strait-pact-new-day-for-taiwanese-investors/

Asian Stocks Advance for a Third Day on Earnings, Stimulus Bets

Asian stocks rose a third day, with the regional benchmark index extending a three-month high, on speculation central banks from the U.S. to China will take steps to boost growth and after companies including Chimei Innolux Corp. beat estimates.

Kawasaki Kisen Kaisha Ltd. paced gains among Japanese shipping lines, rising 3.6 percent, before a report tomorrow expected to show inflation slowing in China, making room for policy easing in the world’s biggest commodities market. Sumco Corp. and other chip-related companies advanced after Goldman Sachs Group Inc. boosted its outlook for the U.S. semiconductor industry. Chimei Innolux gained 7 percent in Taiwan after the display maker reported a smaller-than-expected loss.

The MSCI Asia Pacific Index gained 0.4 percent to 120.09 as of 7:36 p.m. in Tokyo, paring gains of as much as 0.9 percent amid speculation Japanese stocks have risen too far, too fast. More than three stocks rose for every two that fell on the measure, which has gained about 10 percent from this year’s low on June 4 as Europe eased the terms of Spain’s banking bailout and global central banks cut interest rates.

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by stekunan on August 8, 2012  •  Permalink
Posted in Asia, Business, China, Japan, Market, Stock
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Posted by stekunan on August 8, 2012

https://theasiancenturyreport.wordpress.com/2012/08/08/asian-stocks-advance-for-a-third-day-on-earnings-stimulus-bets/

Indonesian Economy Expands

Indonesia’s economy expanded a higher-than-expected 6.4% in the second quarter as robust domestic demand offset a decline in the international appetite for its exports.

In the three months ended June 30, Southeast Asia’s largest economy continued to rack up some of the strongest economic growth in the world, as the archipelago’s growing consumer class was relatively unaffected by global debt problems and slowdowns that are dousing demand in many developed countries.

he Central Statistics Agency said Indonesia’s gross domestic product climbed 6.4% from a year earlier and 2.8% from the previous quarter. The 6.4% figure for the quarter beat analyst forecasts, with most expecting growth for the three months to be around 6.1%.

“If any country in Asia was going to hold up well in the second quarter, I expected it would be Indonesia, given its strong domestic consumption,” said Kenneth Akintewe, a portfolio manager at Aberdeen Asset Management Asia Ltd.

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by stekunan on August 8, 2012  •  Permalink
Posted in Asia, Business, Indonesia, Industry, Market
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Posted by stekunan on August 8, 2012

https://theasiancenturyreport.wordpress.com/2012/08/08/indonesian-economy-expands/

IMF Scales Back Southeast Asia Growth Forecast

The International Monetary Fund has cut its forecast on the economic growth of five nations in Southeast Asia to better reflect faltering growth in the global economy. Monday’s assessment, released in a report by the IMF, was the latest development institution to announce an assessment after the World Bank cut its economic growth forecast for next year.

The IMF cut the economic growth forecast for Indonesia, Malaysia, the Philippines, Thailand and Vietnam, which together are known as the Asean 5, to expand 6.1 percent in 2013, slightly lower that its earlier forecast of 6.2 percent. It cut the global economic outlook for growth to 3.9 percent next year, from its previous forecast of 4.1 percent.

Still, the IMF, which loaned billions of dollars to Thailand and Indonesia during the 1997-98 Asian financial crisis with strict conditions, maintained the growth forecast for the year at 5.4 percent, unchanged from its forecast three months ago.

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by stekunan on August 8, 2012  •  Permalink
Posted in Asia, Bank, Indonesia, Market, Vietnam
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Posted by stekunan on August 8, 2012

https://theasiancenturyreport.wordpress.com/2012/08/08/imf-scales-back-southeast-asia-growth-forecast/

Bank Indonesia Will Likely Maintain Rate With Inflation Held in Check

The central bank, Bank Indonesia, will likely hold its policy rate as the economic outlook remains bright, dismissing concerns of a pickup in inflation, analysts say.

“Bank Indonesia meets on Thursday and we expect rates to remain unchanged at 5.75 percent,” said Prakriti Sofat, economist at Barclays Capital in Singapore, in a note to clients on Monday. The central bank has kept its key rate in the last five months after cutting it by 25 basis points in February to maintain growth momentum at home and defend the country’s economy from the effects of a slowdown in Europe and the United States.

Bank Indonesia said in its July 12 statement that economic turbulence in Europe and weakening exports have put pressure on the rupiah. July’s pause was also aimed to support the currency, it said. The rupiah has lost 4.5 percent against the dollar this year.

Prakriti said further monetary easing “would weigh on the rupiah,” given relatively strong economic expansion in the second quarter and already accelerating inflation. She said inflation could reach the top end of Bank Indonesia’s forecast of 3 percent to 5 percent. Inflation accelerated in July at a 4.56 percent year-on-year rate, from June’s 4.53 percent.

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by stekunan on August 8, 2012  •  Permalink
Posted in Asia, Bank, Indonesia, Industry, Market
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Posted by stekunan on August 8, 2012

https://theasiancenturyreport.wordpress.com/2012/08/08/bank-indonesia-will-likely-maintain-rate-with-inflation-held-in-check/

Sound Global Issues Year’s First Chinese High-yield Dollar Debut

Sound Global became the first Chinese company to issue a debut high-yield dollar bond this year, to the surprise of rivals, who were expecting the deal to get pulled.

Demand for the $150 million five-year bond reached $340 million — hardly roaring — and it seemed as though the company struggled. Sound Global had held a non-deal roadshow a few months back, went silent and then returned with a second roadshow late July. On Monday night, it seized a window to tap the market, making it the first wastewater treatment company to issue a bond in Asia.

Earlier this year, a handful of Chinese high-yield issuers had unsuccessfully attempted to issue debut bonds. Car dealers China Zhengtong Auto and Baoxin Auto both attempted to print debut deals and came out with guidance, only to pull them back in May. China Tianrui Cement had mandated Deutsche Bank as sole bookrunner for a dollar bond, but after holding roadshows, did not make it to the market. It subsequently decided to issue a dim sum bond — but that, too, has not materialised.

Some suggest that Sound Global’s success is a sign that conditions have improved. “The criticisms that investors had for China Zhengtong Auto and Baoxin Auto — worries about the company being small, and potential corporate governance issues, hold true for Sound Global, so it’s surprising that the deal got done,” said one banker. “It makes you wonder, if those deals returned now, whether they may also get done. It’s all touch and go and issuers have to be prepared to seize opportunities as and when they appear.”

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by stekunan on August 8, 2012  •  Permalink
Posted in Asia, Business, China, Finance, Industry
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Posted by stekunan on August 8, 2012

https://theasiancenturyreport.wordpress.com/2012/08/08/sound-global-issues-years-first-chinese-high-yield-dollar-debut/

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