Market Update for ASEAN+3 March2013

MARKET UPDATE FOR ASEAN+3 March 2013

MARKET UPDATE FOR ASEAN+3

1 March 2013, 17:00 local time SGT (UTC+8)

MARKET DEVELOPMENTS

Asian stocks rose with the regional benchmark index heading for its biggest weekly advance in two months. Japanese shares rallied after a drop in consumer prices stoked speculation the Bank of Japan will add to monetary easing to beat deflation. The MSCI Asia Pacific Index added 0.1 percent to 135.24 as of 5:08 p.m. in Tokyo, reversing losses of as much as as 0.4 percent. About four shares fell for every three that rose on the gauge. The measure yesterday capped a fourth month of advance, the longest winning streak since September 2009, amid signs of economic recovery in the U.S. and Chinese and on bets Japanese Prime Minister Shinzo Abe will step up efforts to boost the worlds third-largest economy.

Dollar outperforms in best month since May on budget cut. The dollar led gains in world markets last month, beating global measures of bonds, stocks and commodities, as the threat of U.S. budget cuts proved no barrier to investors snapping up American assets. Intercontinental Exchange Inc.s Dollar Index, which tracks the currency against those of six major U.S. trading partners, climbed 3.5 percent in February, ending a two-month decline. The dollars advance underscores how investors are backing the worlds biggest economy to weather the effects of the spending reductions, known as sequestration, that take effect today. While the non-partisan Congressional Budget Office said the cuts will wipe 0.6 percent off U.S. growth this year, home sales, consumer confidence and employment are improving at the same time that the Federal Reserve vows to continue its unprecedented support.

WTI oil dropped to the lowest price this year and headed for a second weekly decline as OPEC production rose for the first time in six months. Futures slid as much as 0.7 percent to $91.43 a barrel in New York, the lowest intraday price since Dec. 31. Output in the Organization of Petroleum Exporting Countries gained 97,000 barrels to an average of 30.7 million a day last month, a Bloomberg survey survey of oil companies, producers and analysts showed. WTI for April delivery was down 29 cents at $91.76 a barrel in electronic trading on the New York Mercantile Exchange at 3:45 p.m. Singapore time. Meanwhile, Brent for April settlement dropped 30 cents to $111.08 a barrel on the London-based ICE Futures Europe exchange.

BREAKING NEWS

GLOBAL

Americans confidence advanced last week to the highest level this year and jobless claims dropped more than forecast. The Bloomberg Consumer Comfort Index rose to minus 32.8 in the week ended February 24 from minus 33.4 as the share of Americans with a positive view of the worlds largest economy matched the highest since March 2008. Applications for jobless benefits fell 22,000 last week to 344,000, Labor Department figures showed. Improving job prospects may be brightening consumers moods. Employers hired a net 157,000 workers last month following revised gains of 196,000 and 247,000 in December and November that were bigger than initially estimated. Todays Labor Department report showed the number of people collecting

of 10

unemployment insurance dropped to 3.07 million in the week ended February 16, the lowest level since June 2008.

India seeks to curb deficit as spending on poor climbs. The country targets a shortfall of 4.8 percent of gross domestic product in the 12 months starting April 1, and achieved 5.2 percent in 2012-2013, Finance Minister Palaniappan Chidambaram said in his budget speech in New Delhi yesterday. Finance Minister allocated 330 billion rupees ($6.1 billion) for the ruling coalitions flagship rural jobs program and 100 billion rupees for a plan to give the poor cheap food grains, ahead of a general election due by 2014. Total expenditure will climb to 16.7 trillion rupees in 2013-2014 from an estimated 14.3 trillion rupees this financial year, budget documents showed. Gross market borrowing was set at a record 6.29 trillion rupees for 2013-2014, an increase of almost 13 percent. Net borrowing will be 4.84 trillion rupees.

The Netherlands is considering even tougher measures amid a public backlash against the industry. After paring bonuses for top banking executives to 100 percent of annual salaries in 2010, the Dutch government plans to limit bonuses to 20 percent of wages across the industry. At the center of the campaign is Dutch Finance Minister Jeroen Dijsselbloem, who was appointed head of the eurogroup of finance ministers in January. Dijsselbloem, like peers elsewhere on the continent, and his Labor Party are concerned theyre losing the support of voters as taxpayers foot the bill for hundreds of billions of euros in bank bailouts.

REGIONAL

Two Chinese manufacturing indexes showed a slower-than-estimated pace of expansion. The official Purchasing Managers Index was 50.1 in February, the weakest in five months and down from 50.4 in January, a report from the National Bureau of Statistics and China Federation of Logistics and Purchasing showed today in Beijing. A separate gauge from HSBC Holdings Plc and Markit Economics dropped to a four-month low of 50.4 from 52.3. Readings above 50 indicate expansion. The official index compares with the 50.5 median estimate in a Bloomberg News survey of 31 analysts. The median forecast of 14 economists for the HSBC gauge was 50.6, after a preliminary reading of 50.4 issued February 25. A measure of new orders in the government survey fell to 50.1, a five-month low, while export orders showed a second month of contraction.

Indonesias inflation accelerated to a 20-month high in February on higher food prices and power tariffs. Consumer prices climbed 5.31 percent from a year earlier, after a previously reported 4.57 percent gain in January, the Statistics Bureau said in Jakarta today. Consumer prices rose 0.75 percent last month from January, todays report showed. Core inflation was 4.29 percent, compared with a previously reported 4.32 percent pace the month before. Higher power tariffs and minimum wages may increase price pressures in coming months, with food prices also still elevated after floods in January.

Japans consumer prices fell for the eighth time in nine months. Consumer prices excluding fresh food fell 0.2 percent in January from a year earlier, the third-straight decline, the statistics bureau said in Tokyo today. While a weaker yen improves the outlook for exporters and pushes up the prices of imported energy and commodities,

of 10

continued price falls show the scale of the Bank of Japans challenge in achieving 2 percent inflation.

Singapore avoids stimulus as minister acts to curb bubble risk. Singapore Finance Minister Tharman Shanmugaratnam said theres no need for monetary stimulus in a country with full employment, leaving policy makers reliant on unorthodox tools to prevent asset bubbles. The minister said property prices need to stabilize further even as measures implemented earlier this year begin to take effect. A search for higher-yielding assets amid monetary easing in developed economies has fuelled record property prices in Singapore, sparking inflationary pressures and social tensions.

Thailands inflation slowed for a second straight month in February, helped by state subsidies and a stronger baht, and as food prices fell. Prime Minister Yingluck Shinawatra said last month the price of cooking gas for household users will remain fixed till end-March, and also extended a tax cut on diesel. Consumer prices rose 3.23 percent from a year earlier, the Ministry of Commerce said in Nonthaburi province outside Bangkok today, from a previously reported 3.39 percent increase in January. Prices gained 0.21 percent in February from a month earlier, todays report showed. Core inflation, which excludes fresh food and fuel costs, was 1.57 percent last month. The central bank uses the measure to guide policy and expects price gains will stay below its target of 3 percent this year.

IFIs NEWS (compiled from their websites)

ADB Press Release: $1 Million ADB Project Launched to Support Davao's Sustainable Transport

The ADB, Department of Transportation and Communications, and City of Davao, together with the Embassy of Japan, have launched a $1 million technical assistance (TA) project funded by the Japan Fund for Poverty Reduction that will support the city in developing a sustainable urban public transport system. This project will help create an enabling environment for a modern, efficient, and affordable public transport system in Davao that can then be replicated across the Philippines. The TA will prepare plans and franchising mechanisms to improve the integration of the public transport system, widen the coverage area, and deliver more transport services to passengers.

http://www.adb.org/news/philippines/1-million-adb-project-launched-support-davaos-sustainable-transport

ADBI Working Paper: Understanding Innovation in Production Networks in East Asia

The ADBI publicised the captioned working paper. This paper explores the "black box" of innovation in the electronics production network in East Asia through a mapping exercise of technological capabilities and an econometric analysis of exporting in the People's Republic of China (PRC), Thailand, and the Philippines. The econometric results confirm the importance of foreign ownership and innovation in increasing the probability of exporting in electronics.

http://www.adbi.org/files/2013.03.01.wp410.understanding.innovation.prod.networks.east.asia.pdf

BIS Speech: Charles Bean: Nominal income targets - an old wine in a new bottle

of 10

The BIS has publicised the speech made by Mr Charles Bean, Deputy Governor for Monetary Policy of the Bank of England, at the Institute for Economic Affairs Conference on the State of the Economy, London, 27 February 2013.

http://www.bis.org/review/r130228c.pdf?ql=1

BIS Speech: Mario Draghi: The policy and the role of the European Central Bank during the crisis in the euro area

The BIS has publicised the speech made by Mr Mario Draghi, President of the European Central Bank, at the Katholische Akademie in Bayern, Munich, 27 February 2013

http://www.bis.org/review/r130228a.pdf?ql=1

BIS Speech: Paul Fisher: Current issues in monetary policy

The BIS has publicised the speech made by Mr Paul Fisher, Executive Director for Markets of the Bank of England, at the University of Bristol London Alumni Event, Bristol, 26 February 2013

http://www.bis.org/review/r130228d.pdf?ql=1

BIS Speech: Peter Praet: Economic adjustment in the euro area

The BIS has publicised the speech made by Mr Peter Praet, Member of the Executive Board of the European Bank, at the Institutional Money Congress 2013, Frankurt am Main, 27 February 2013.

http://www.bis.org/review/r130228b.pdf?ql=1

G20 Press Release: World Bank presents umbrella report on financing investments

During the first G20 Finance Ministers and Central Bank Governors' meeting which was held on February 15-16 in Moscow (Russia), World Bank presented the Umbrella Report on the topic of "Long-Term Investment Financing for Growth and Development". The report was prepared on the basis of analysis made by the WB, IMF, FSB, OECD, UN and other IOs. The G20 Finance Ministers and Central Bank Governors supported this report and decided to create a Study Group for further work in this area.

http://www.g20.org/news/20130228/781245645.html (Press Release)

http://www.g20.org/load/781245667 (Umbrella Report)

IMF Press Release: 2012 Article IV Consultation with Malaysia

The IMF has concluded the Article IV consultation with Malaysia on 11 February 2013.

Executive Directors commended the authorities for their skillful policies, which have underpinned Malaysias strong macroeconomic performance despite a weak external environment. Directors noted that the external rebalancing of Malaysias economy has gained momentum, and that domestic demand is increasingly driving economic growth. Looking ahead, Directors considered that Malaysias medium term prospects are favorable, as the authorities continue to focus on safeguarding financial stability, strengthening fiscal sustainability, and securing high and inclusive growth.

http://www.imf.org/external/np/sec/pn/2013/pn1324.htm (Press Release)

http://www.imf.org/external/pubs/ft/scr/2013/cr1351.pdf (Staff Report)

of 10

http://www.imf.org/external/pubs/ft/scr/2013/cr1352.pdf (Financial Sector Stability Assessment)

http://www.imf.org/external/pubs/ft/scr/2013/cr1353.pdf (Report on the Observance of Standards and Codes)

IMF Working Papers

A Framework for Efficient Government Investment Welfare economics, scope and performance of government, externalities, public goods, cost-benefit analysis, subsidies economize on spending without losing effectiveness by modifying the conceptual framework guiding state expenditures. The familiar framework says that state intervention is justified when the spending provides public goods or when the intervention addresses externalities, provided the social return is above a threshold. This paper argues that another consideration needs to be brought into the mix - whether, in spite of the externalities, the private sector has an incentive to undertake the activity.

www.imf.org/external/pubs/ft/wp/2013/wp1358.pdf

Targeting, Cascading, and Indirect Tax Design - This paper addresses two fundamental issues in indirect tax design. It first revisits the case for reduced rates on items especially important to the poor, establishing conditions under which even very crudely targeted spending measures better serve their interests. It then explores the welfare costs from cascading taxes, showing that these may actually be lower the wider the set of inputs that are taxed but, more to the pointand contrary to the common notion that a low rate on a broad base is always good tax policymay plausibly be large even at a low nominal tax rate and with few stages of production.

http://www.imf.org/external/pubs/ft/wp/2013/wp1357.pdf

World Bank Press Release: China: World Bank to help improve capacity and management of Meizhou Bay Harbor

Today the World Bank Board of Directors approved a loan of US$50 million to the Peoples Republic of China to improve the capacity of the main navigation channel and enhance the operational management capacity of the Meizhou Bay Harbor. The project will contribute to the achievement of Chinas Regional Development Plan for the Strait West Economic Zone and boost the economic and social development of inland areas in Fujian, Jiangxi and Hunan provinces. It will also contribute to the countrys objective of creating a less energy-intensive transport system by reducing the average length of haul between inland traffic generating activities and seaports. The total estimated cost of the Project is US$138.16 million, to be financed by the World Bank loan and funding from the central and local governments as well as Meizhou Bay Harbor Administration Bureau.

http://www.worldbank.org/en/news/press-release/2013/02/28/china-world-bank-help-improve-capacity-management-meizhou-bay-harbor

World Bank Press Release: World Bank Group President to visit Brazil: Jim Yong Kim and President Dilma Rousseff to Broaden Strategic Partnership

World Bank Group (WBG) President Jim Yong Kim will visit Brazil from March 4 to 6 aiming to broaden the Groups strategic partnership with Brazil in the context of the countrys growing role in global development. President Kim is scheduled to meet with President Dilma Rousseff, Finance Minister Guido Mantega, BNDES (Brazils

of 10

Development Bank) President Luciano Coutinho and to visit projects in Rio de Janeiro and Bahia, where hes also scheduled to meet with local authorities. This will be the first official meeting between the Bank's leader, who took office in July 2012, and President Rousseff. In the last decade, Brazil has raised more than 20 million people out of poverty and laid strong economic foundations for growth and crisis resilience. The WBG has contributed in these efforts and Brazil is a key strategic partner.

http://www.worldbank.org/en/news/press-release/2013/02/28/world-bank-group-president-visit-brazil-jim-yong-kim-president-dilma-rousseff-broaden-strategic-partnership

World Bank Press Release: World Bank to support higher education reform in Vietnam, and improve school readiness for 5-year olds

The World Bank Board of Directors today approved a total of US$150 million in two credits to help Vietnam to support and sustain the implementation of the Higher Education Reforms Agenda, and to improve school readiness for 5 year old children. Improving education outcomes for the population is an important part of Vietnams economic and social development agenda, and has been defined as one of the three breakthrough areas in its Socio-Economic Development Strategy for 2011-2020. Said Victoria Kwakwa, the World Bank Country Director for Vietnam. The World Bank is pleased to support the strengthening of Vietnams education sector to help raise Vietnams economic competitiveness.

http://www.worldbank.org/en/news/press-release/2013/02/28/world-bank-support-higher-education-reform-vietnam-improve-school-readiness-5-year-olds

WTO Press Release: Panel established on Viet Nams complaint against US shrimp measure

The Dispute Settlement Body, on 27 February 2013, established a panel to examine the dispute US Anti-Dumping Measures on Certain Shrimp from Viet Nam. It elected Ambassador Jonathan Fried of Canada as its new chairman.

http://www.wto.org/english/news_e/news13_e/dsb_18feb13_e.htm

WTO Press Release: WTO issues panel report on Chinas anti-dumping duties on EU X-ray scanners

On 26 February 2013, the WTO issued the dispute panel report in the case China Definitive Anti-Dumping Duties on X-Ray Security Inspection Equipment from the European Union (WT/DS425/R).

http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds425_e.htm#bkmk425r

of 10

FOREIGN CURRENCY EXCHANGE RATES

2012 close Previous wk's

close 28-Feb 1-Mar % change 2013 YTD

(%chg) China 6.23 6.24 6.22 6.22 -0.02 0.2 Hong Kong SAR 7.75 7.76 7.76 7.76 0.00 -0.1

Indonesia 9,793.00 9,657.00 9,669.00 9,682.00 -0.13 -0.3 Japan 86.75 92.68 92.56 92.65 -0.10 -5.7 Korea 1,064.40 1,095.80 1,082.90 1,084.56 -0.15 -1.9 Malaysia 3.06 3.10 3.09 3.10 -0.20 -2.0 Philippines 41.01 40.70 40.66 40.69 -0.06 0.4 Singapore 1.22 1.24 1.24 1.24 0.10 -1.4 Thailand 30.59 29.80 29.78 29.75 0.10 1.9 Vietnam 20,840.00 20,845.00 20,955.00 20,924.00 0.15 -0.4

Note: Negative values indicate depreciation and positive values indicate appreciation.

STOCK MARKET INDEX


close 28-Feb 1-Mar % change 2013 YTD

(%chg) China 2,269.1 2,432.4 2,365.6 2,359.5 -0.26 4.0 Hong Kong SAR 22,656.9 23,215.2 23,020.3 22,880.2 -0.61 -1.9

Indonesia 4,316.7 4,491.3 4,795.8 4,811.6 0.33 10.7 Japan 10,395.2 11,153.2 11,559.4 11,606.4 0.41 11.7 Korea 1,997.1 1,950.9 2,026.5 2,026.5 0.00 -0.2 Malaysia 1,689.0 1,623.8 1,637.6 1,637.4 -0.01 -2.2 Philippines 5,812.7 6,458.7 6,721.5 6,642.3 -1.18 13.3 Singapore 3,167.1 3,270.3 3,270.0 3,271.6 0.05 2.2 Thailand 1,391.9 1,497.3 1,541.6 1,547.9 0.41 10.0 Vietnam 413.7 494.0 474.6 477.2 0.55 14.1

OVERNIGHT LENDING RATE (%) 3-MONTH INTERBANK LENDING RATE (%) 28-Feb 1-Mar bps change 28-Feb 1-Mar bps change China 4.000 4.150 15.00 3.895 3.895 0.00 Hong Kong SAR 0.091 0.091 0.00 0.383 0.383 0.00

Indonesia 4.179 4.180 0.07 4.900 4.900 0.00 Japan 0.100 0.078 -2.25 0.270 0.268 -0.17 Korea 2.750 2.750 0.00 2.770 2.770 0.00 Malaysia 3.000 3.000 0.00 3.210 3.210 0.00 Philippines 1.977 1.725 -25.20 0.290 0.441 15.10 Singapore 0.066 0.066 0.00 0.375 0.375 0.00 Thailand 2.750 2.750 0.00 2.864 2.866 0.23 Vietnam 1.500 1.922 42.20 6.167 6.167 0.00

CREDIT DEFAULT SWAP (IN BPS)

27-Feb 28-Feb bps change China 65.20 63.74 -1.47 Hong Kong SAR 45.35 44.35 -1.00

Indonesia 137.69 136.76 -0.94 Japan 72.03 70.60 -1.43 Korea 67.17 66.20 -0.97 Malaysia 78.48 76.53 -1.95 Philippines 99.80 98.89 -0.91 Thailand 90.69 89.74 -0.95 Vietnam 211.74 209.46 -2.28

Note: Negative values indicate lower pricing of risk and positive values indicate higher pricing of risk. Latest data are available on a one-day lag.

of 10

28-Feb 1-Mar % change Gold Spot (in US$ per ounce)

1,579.6 1,577.0 -0.17

Sources: Bloomberg & Datastream

CREDIT RATINGS

S&P Moody's Fitch China AA- Aa3 A+ Hong Kong AAA Aa1 AA+ Indonesia BB+ Baa3 BBB- Japan AA- -- AA Korea A Aa3 A+ Malaysia A- A3 A- Philippines BB+ Ba1 BB+ Singapore AAA -- AAA Thailand BBB+ Baa1 BBB Vietnam BB- B1 B+

INTERNATIONAL RESERVES (END-MONTH, IN US$ BILLION)

2012 2013 31-May 30-Jun 31-Jul 31-Aug 30-Sep 31-Oct 30-Nov 31-Dec 31-Jan

China 3,206.1 3,240.0 3,240.0 3,272.9 3,285.1 3,287.4 3,297.7 3,311.6 n.a Hong Kong SAR 291.9 295.0 296.3 298.2 301.2 301.7 305.2 317.3 321.0

Indonesia 111.5 106.5 106.6 109.0 110.2 110.3 111.3 112.8 108.8 Japan 1,277.7 1,270.5 1,272.8 1,273.2 1,277.0 1,274.2 1,270.9 1,268.1 1,267.3 Korea 310.9 312.4 314.4 316.9 322.0 323.5 326.1 327.0 328.9 Malaysia 136.0 134.2 134.5 134.9 137.5 138.3 139.1 139.7 140.2 Philippines 76.1 76.1 79.8 80.7 82.0 81.7 83.9 83.8 85.3 Singapore 237.7 243.4 244.1 246.2 252.1 254.2 255.8 259.3 258.8 Thailand 172.6 174.7 175.3 179.2 183.6 181.5 181.6 181.6 181.6 Vietnam 19.9 19.7 20.0 20.8 21.3 n.a n.a n.a n.a Note: Data for China and Vietnam refer to FX reserves EXTERNAL LIQUIDITY RATIOS

Reserves - latest 3 months imports

of goods/serv Short-term external

debt Import cover (Qtrs of

imports covered Reserves over

short-term debt (US$bn) (US$bn) (US$bn) by reserves) China 3,311.6 504.3 572.8 6.6 5.8 Hong Kong SAR 321.0 144.7 711.2 2.2 0.5

Indonesia 108.8 50.3 43.9 2.2 2.5 Japan 1,267.3 70.4 2,255.1 18.0 0.6 Korea 327.0 150.9 126.7 2.2 2.6 Malaysia 139.7 59.2 32.4 2.4 4.3 Philippines 83.8 19.3 8.0 4.4 10.5 Singapore 259.3 118.6 924.3 2.2 0.3 Thailand 181.6 68.0 57.2 2.7 3.2 Vietnam n.a 25.4 10.0 - -

Notes: Import cover is computed by dividing international reserves with 3-month worth of imports of goods and services using latest available data from balance of payments statistics. Short-term debts are liabilities due in 1 year or less. For Vietnam, the figure refers to Private Creditor and not Short-term debt, and are released quarterly.

of 10

DATA RELEASES FOR THE DAY Country Indicators Period Last Previous

JAPAN National CPI YoY % Jan -0.3 -0.1 JAPAN National CPI Ex Food, Energy YoY % Jan -0.7 -0.6 THAILAND Consumer Price Index (YoY)% Feb 3.23 3.39 THAILAND Core CPI (YoY)% Feb 1.57 1.59 JAPAN Jobless Rate % Jan 4.2 4.3 JAPAN Job-To-Applicant Ratio Jan 0.85 0.83 CHINA PMI Manufacturing Feb 50.1 50.4 KOREA Ext Trade - Imports (YoY)% Feb -10.7 3.9 KOREA Ext Trade - Export (YoY)% Feb -8.6 10.9 CHINA HSBC Manufacturing PMI Feb 50.4 52.3 INDONESIA Total Imports (YoY)% Jan 6.8 -5.4 INDONESIA Core Inflation (YoY)% Feb 4.29 4.32 INDONESIA Exports (YoY)% Jan -1.2 -9.9 INDONESIA Inflation (YoY)% Feb 5.31 4.57 INDONESIA Inflation NSA (MoM)% Feb 0.75 1.03 INDONESIA Total Trade Balance (USD mn) Jan -171 -188

SELECTED ECONOMIC RELEASES CALENDAR (25 Feb 1 Mar 2013) Expected Release Date Country Indicators Period 2/25/2013 CHINA HSBC Flash China Manufacturing PMI Feb SINGAPORE CPI (YoY)% Jan HONG KONG Imports YoY% Jan HONG KONG Exports YoY% Jan HONG KONG Trade Balance (HKD bn) Jan VIETNAM Imports YTD (YoY)% Feb VIETNAM Exports YTD (YoY)% Feb VIETNAM Industrial Production Index YoY % Feb VIETNAM Retail Sales YTD (YoY)% Feb 2/26/2013 PHILIPPINES Total Imports (YoY)% Dec PHILIPPINES Trade Balance (USD mn) Dec SINGAPORE Industrial Production YoY% Jan 2/27/2013 THAILAND Customs Imports (YoY)% Jan THAILAND Customs Exports (YoY)% Jan KOREA SK Consumer Confidence Feb KOREA Current Account in (USD mn) Jan HONG KONG GDP (YoY)% 4Q HONG KONG GDP sa (QoQ)% 4Q 2/28/2013 JAPAN Industrial Production YOY% Jan P KOREA Business Survey- Non-Manufacturing Mar KOREA Business Survey- Manufacturing Mar KOREA Industrial Production (YoY)% Jan KOREA Industrial Production (MoM)% Jan MALAYSIA Unemployment Rate % 4Q HONG KONG Govt Mthly Budget Surp/Def (HKD bn) Jan

of 10

THAILAND Total Trade Balance (USD mn) Jan THAILAND Total Imports YOY% Jan THAILAND Total Exports YOY% Jan THAILAND Current Account Balance (USD mn) Jan THAILAND Business Sentiment Index Jan 3/1/2013 THAILAND Foreign Reserves (USD bn) Feb 22 INDONESIA Consumer Confidence Index Feb JAPAN Official Reserve Assets (USD bn) Feb INDONESIA Money Supply - M2 (YoY)% Jan JAPAN National CPI YoY % Jan JAPAN National CPI Ex Food, Energy YoY % Jan THAILAND Consumer Price Index (YoY)% Feb THAILAND Core CPI (YoY)% Feb JAPAN Jobless Rate % Jan JAPAN Job-To-Applicant Ratio Jan CHINA PMI Manufacturing Feb KOREA Ext Trade - Imports (YoY)% Feb KOREA Ext Trade - Export (YoY)% Feb CHINA HSBC Manufacturing PMI Feb INDONESIA Total Imports (YoY)% Jan INDONESIA Core Inflation (YoY)% Feb INDONESIA Exports (YoY)% Jan INDONESIA Inflation (YoY)% Feb INDONESIA Inflation NSA (MoM)% Feb INDONESIA Total Trade Balance (USD mn) Jan

The ASEAN+3 Market Update is compiled based on the publicly available information only and is for internal use. The interpretation of this document or any information contained or referred to on the document and the consequences which might be caused by such interpretation will not be the responsibility of AMRO. The information in this document is provided for information purposes only.



MARKET DEVELOPMENTS

Asian stocks drop as China tights property mortgage rules. Asian stocks dropped, with the regional benchmark index heading for its second day of decline, after China tightened mortgage rules to cool the property market. The MSCI Asia Pacific Index fell 0.9 percent to 133.53 as of 3:39 p.m. in Tokyo. Hong Kongs Hang Seng Index slipped 1.5 percent. South Koreas Kospi Index fell 0.7 percent and Chinas Shanghai Composite Index dropped 3.6 percent, heading for its lowest close since Jan. 11. Japans Nikkei 225 Stock Average added 0.4 percent. European stock futures declined, indicating the Stoxx Europe 600 Index will fall for a second day, following Asian shares lower. U.S. index futures also dropped.

Crude-oil futures edged lower in Asian trade after Nymex tumbled 1.5% Friday on concerns about the $85 billion in U.S. automatic budget cuts started on Friday. On the New York Mercantile Exchange light, sweet crude futures for delivery in April traded at $90.44 a barrel at 0628 GMTdown $0.24 in the Globex electronic session. April Brent crude on Londons ICE Futures exchange fell $0.04 to $110.36 a barrel. The Brent-Nymex spread is up from around US$16/bbl in mid January to more than $19/bbl currently.

BREAKING NEWS

GLOBAL

Euro leaders demand austerity as Italy nears new vote. European leaders demanded that euro members press on with budget cuts to end the debt crisis as Italy edged closer to a new election after an anti-austerity vote last week resulted in political deadlock. Finance ministers from the 17-member single-currency bloc meet in Brussels today to discuss issues including a bailout for Cyprus. Italian political instability, after last weeks election ended in a four-way split, threatens to reignite concern about the deepening of the debt crisis. Voters in the blocs third-largest economy revolted against German-inspired austerity measures, handing the party of comedian-turned-politician Beppe Grillo more than 25 percent of the vote with its anti-spending cut message and a call for a referendum on euro membership.

London luxury-home prices rise most in 10 months on pound. Central London luxury-home prices unexpectedly rose at the fastest pace in 10 months in February as the British pounds depreciation helped attract international investors. The average price of a house or apartment in the citys most expensive neighborhoods climbed 0.9 percent from January, according to an index compiled by the broker. On March 1, an industry report showed U.K. manufacturing unexpectedly shrank in February and the pound fell to less than $1.50 for the first time since July 2010.

REGIONAL

South Korean inflation slows in February. South Korea's inflation rate slowed slightly to 1.4 percent in February, well below the central bank's target band and offering more

of 8

room for monetary easing, government data showed. The figure, which compares with a rate of 1.5 per cent in January, is below the Bank of Korea's inflation target band of 2.5 to 3.5 percent, and offers the central bank the option of a further interest rate cut to help spur growth. The central bank kept the key rate unchanged at 2.75 percent in February for a fourth straight month. Core inflation, which excludes volatile energy and food prices, was at 1.3 per cent, compared with 1.2 per cent the previous month. The central bank recently slashed its forecast for economic growth for this year to 2.8 per cent from 3.2 per cent estimated last October.

Kuroda pledges bolder action as Bank of Japan governor. Haruhiko Kuroda said that the Bank of Japan will do whatever is needed to end 15 years of deflation should he be confirmed as governor and indicated that open-ended asset purchases could start sooner than next year. Prime Minister Shinzo Abes nomination of Kuroda has spurred forecasts for more aggressive easing after Masaaki Shirakawa exits the job on March 19, with the yield on 5-year government bonds hitting a record low today. The scale and scope of the assets purchased by the central bank so far are not enough to achieve a 2 percent inflation target, Kuroda said. The central bank currently buys government debt maturing up to three years, as well as exchange- traded funds and other risk assets. Kuroda said he would consider bringing forward open-ended purchases, due to start next year.

Inflation is controllable, People's Bank of China deputy Yi Gang says. The mainland's inflation rate will rise "slightly" this year, partly due to lagging effects, but Beijing is confident that it can keep price pressures under control, a senior central banker says, suggesting any dramatic tightening of monetary policy is unlikely. Speaking on the sidelines of the opening session of the Chinese People's Political Consultative Conference, deputy central bank governor Yi Gang said the consumer price index might rise to about 3 per cent, compared with 2.6 per cent last year. He declined to comment on whether monetary policy should be used to curb a rise in housing prices. The State Council rolled out new directives on Friday, urging authorities to curb speculative activities through steps including strict implementation of a 20 per cent tax on earnings from property reselling.

Indonesian Palm Reserves Seen Declining by Bangun on Demand. Palm oil inventories in Indonesia, the worlds largest producer, may drop 8 percent this year as a significant increase in demand outstrips record supplies, according to Derom Bangun, chairman of the nations palm board. Prices rallied, snapping eight days of losses. Stockpiles of the oil used in food and fuels may contract to 2.3 million metric tons from the 2.5 million tons estimated at the end of 2012, said Bangun. Production may reach an all-time high of about 30 million tons, Bangun said in a phone interview from Jakarta, reiterating a forecast made on Feb. 18. The worlds most-used cooking oil is mired in a bear market as supply and stockpiles have surged to records.

Direct trade in RMB increases in Thailand. The Bank of England recently announced it has reached an agreement with the People's Bank of China to establish a currency swap arrangement. That could make London the European hub of Renminbi trade, which has increased rapidly since currency restrictions were liberalized in 2010. In Asia, direct trade in Renminbi has been underway for some years, and Thailand has seen a sharp rise in usage of Chinas currency. In Thailand, research by one of the Kingdom's leading

of 8

banks has shown Renminbi direct trade has increased five times in the past year. The growth area is between SMEs.

Cambodias Exports to Malaysia rise. Cambodias exports of agricultural products to Malaysia rose sharply last year compared to a year earlier, according to a press release from the Malaysian embassy to Cambodia, with milled rice and crude rubber accounting for most of the total. Agricultural goods from Cambodia formed 79 per cent of total imports, which reached $101 million compared to $55.5 million the previous year. Crude rubber was the major component, with a value of $69 million. The release says that since Cambodia launched its Policy on the Promotion of Paddy Rice Production and Export of Milled Rice in 2010, Malaysia has taken a keen interest in diversifying rice import sources. Milled-rice imports from Cambodia have consistently increased from $400,000 in 2010 to $9.5 million in 2011 and $24.3 million in 2012. According to data from the single-window secretariat for facilitating milled rice exports, Malaysia ranked top of the listed importers of Cambodian milled rice with nearly 7,000 tonnes of a total 25,726 tonnes shipped in January.


ADB Press Release: ADB Toughens Anti-corruption Drive

The ADB toughened measures to battle fraud and corruption in 2012, as complaints reached a new annual high. For 2013, ADBs Office of Anticorruption and Integrity (OAI) will continue to channel its work to ADBs front line, to maximize opportunities for ensuring ADBs development funds are used with regard to value for money, for their intended purposes, and not usurped through fraudulent or corrupt practices. It will adopt and continue measures such as increased support for Resident Mission staff, customized project procurement related reviews, and enhanced capacity for due diligence advice.

http://www.adb.org/news/adb-toughens-anti-corruption-drive

ADB & World Bank Press Release: ADB, World Bank Launch Country Gender Assessment for Lao PDR

Lao PDR could reap greater benefits from the countrys rapid economic growth by reducing gender inequality and vulnerability in remote rural areas while enhancing womens ability to take full advantage of expanding economic opportunities, particularly in urban and lowland areas, according to a new ADB and World Bank report. The report suggests that although strong government commitment to achieving gender equity has progressed, persistent imbalances remain in human development endowments such as in health, education, and clean water and sanitation, particularly in remote areas. Geographic, socio-cultural and linguistic challenges remain.

http://www.adb.org/news/lao-peoples-democratic-republic/adb-world-bank-launch-country-gender-assessment-lao-pdr (Press Release)

http://www.adb.org/documents/country-gender-assessment-lao-peoples-democratic-republic (Report)

of 8

ADB Press Release: Statement by ADB Chair of Board of Governors on President's Resignation

The Chairperson of the Board of Governors of the ADB and Finance Minister of India, Palaniappan Chidambaram, has issued the statement in response to President Haruhiko Kurodas submission of his resignation, effective March 18.

http://www.adb.org/news/statement-adb-chair-board-governors-presidents-resignation

ADBI Publication: Patterns of Free Trade Areas in Asia

East and West Center in Honolulu has published a monograph which addresses Asia's rise in global free trade agreement (FTA) activity. The study identifies for policymakers how best to minimize the costs of FTAs while maximizing their benefits. It reexamines key trends and challenges in Asian FTAs and offers new information from analysis of FTAs, economic models, and firm surveys.

http://www.eastwestcenter.org/sites/default/files/private/ps065.pdf

G20 Press Release: Monetary policy issues are discussed on the sidelines of the G20 meetings

A proposal for monetary authorities to adopt nominal GDP target was discussed on the sidelines of the G20 meetings, Chief of the Presidential Experts' Directorate and the Russian G20 Sherpa Ksenia Yudaeva reported in her interview to Bloomberg agency. "There's a very strong process of reconsideration of what appropriate monetary policy means for central banks," - Yudaeva said. - "Proposed measures of targeting nominal GDP maybe an appropriate instrument for the advanced economies with reserve currencies, but with respect to the developing and small economies, it will by no means respond to their problems."

http://www.g20.org/news/20130301/781246986.html

IFC Press Release: IFC, Infrastructure Journal Announce Top Public-Private Partnerships in Emerging Markets

IFC and Infrastructure Journal have highlighted the achievements of 40 public-private partnerships in emerging markets that demonstrate best practices for governments that collaborate with the private sector to provide a wide range of public services and spur economic development. Infrastructure development is critical for growth and poverty reduction in developing countries, and well-structured public-private partnerships can pave the way forward, said Laurence Carter, Director of IFC Advisory Services in Public-Private Partnerships. The PPPs featured in Emerging Partnerships offer proven models that ensure emerging markets benefit from private sector expertise and innovation to increase access, enhance quality, and improve efficiency in infrastructure and public services.

http://www.ifc.org/ifcext/pressroom/IFCPressRoom.nsf/0/B751607612F85A0985257B2300815070

OECD Press Release: Recovering from disaster can be an opportunity for change, says OECD

Through the example of Abruzzo, whose capital LAquila was destroyed by an earthquake four years ago, a new OECD report recommends policies that can speed the recovery of regions hit by natural disasters, making them more attractive to residents, tourists and investors. The report says that Abruzzo should draw upon its own resources to build a long-term development strategy and renovate LAquila to attract

of 8

entrepreneurs and investors. Strengthening cultural and economic networks through private and public participation will be critical to future growth, as will transparency, accountability and community engagement. The recommendations found in the report can guide regions in all countries to more resilient growth and help them monitor good practices and improve the well-being of local communities after natural disasters:

http://www.oecd.org/newsroom/recovering-from-disaster-opportunity-for-change-says-oecd.htm

World Bank Press Release: China - Fujian Meizhou Bay Navigation Improvement Project

The World Bank's Board has approved the captioned project. The objective of the project is to improve the capacity of the main navigation channel in Meizhou Bay and enhance the management capacity of Meizhou Bay Harbor Administration Bureau.

http://www.worldbank.org/en/news/loans-credits/2013/02/28/china-fujian-meizhou-bay-navigation-improvement-project

World Bank Press Release: Coastal Wetlands Highly Vulnerable to Sea-Level Rise

A rise in sea levels by a meter from climate change could destroy more than 60 percent of the developing worlds coastal wetlands currently found at one meter or less elevation, according to a World Bank study. That would lead to economic losses of around $630 million per year. The resulting economic losses from coastal wetland destruction will be in addition to other coastal impacts such as the forced relocation of people and infrastructure. An earlier study co-authored by Dasgupta predicted that 60 million people in developing countries would be forced out of their homes if sea levels rise by one meter. The wetlands study comes as World Bank President Jim Yong Kim is urging the global community to take action on climate change.

http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:23365190~pagePK:34370~piPK:34424~theSitePK:4607,00.html

of 8



close 1-Mar 4-Mar % change 2013 YTD

(%chg) China 6.23 6.22 6.22 6.23 -0.03 0.1 Hong Kong SAR 7.75 7.75 7.75 7.76 -0.02 -0.1 Indonesia 9,793.00 9,682.00 9,682.00 9,714.00 -0.33 -0.6 Japan 86.75 93.59 93.59 93.62 -0.03 -6.7 Korea 1,064.40 1,084.56 1,084.56 1,093.24 -0.79 -2.7 Malaysia 3.06 3.10 3.10 3.11 -0.33 -2.3 Philippines 41.01 40.69 40.69 40.80 -0.28 0.1 Singapore 1.22 1.24 1.24 1.25 -0.52 -2.1 Thailand 30.59 29.76 29.76 29.83 -0.23 1.7 Vietnam 20,840.00 20,925.00 20,925.00 20,965.00 -0.19 -0.6


STOCK MARKET INDEX



(%chg) China 2,269.1 2,359.5 2,359.5 2,273.4 -3.65 0.2 Hong Kong SAR 22,656.9 22,880.2 22,880.2 22,537.8 -1.50 -3.3 Indonesia 4,316.7 4,811.6 4,811.6 4,761.5 -1.04 9.5 Japan 10,395.2 11,606.4 11,606.4 11,652.3 0.40 12.1 Korea 1,997.1 2,026.5 2,026.5 2,013.2 -0.66 -0.9 Malaysia 1,689.0 1,637.4 1,637.4 1,636.0 -0.09 -2.3 Philippines 5,812.7 6,642.3 6,642.3 6,637.6 -0.07 13.2 Singapore 3,167.1 3,270.3 3,270.0 3,271.6 0.05 2.2 Thailand 1,391.9 1,497.3 1,541.6 1,547.9 0.41 10.0 Vietnam 413.7 494.0 474.6 477.2 0.55 14.1

OVERNIGHT LENDING RATE (%) 3-MONTH INTERBANK LENDING RATE (%) 1-Mar 4-Mar bps change 1-Mar 4-Mar bps change China 4.150 3.290 -86.00 3.895 3.892 -0.26 Hong Kong SAR 0.091 0.091 0.00 0.383 0.383 0.00 Indonesia 4.180 4.180 0.00 4.900 4.901 0.07 Japan 0.078 0.093 1.50 0.268 0.266 -0.25 Korea 2.750 2.750 0.00 2.770 2.770 0.00 Malaysia 3.000 3.000 0.00 3.210 3.210 0.00 Philippines 1.725 0.966 -75.90 0.441 0.405 -3.60 Singapore 0.066 0.066 0.00 0.375 0.375 0.00 Thailand 2.750 2.750 0.00 2.866 2.862 -0.38 Vietnam 1.922 1.800 -12.20 6.167 6.000 -16.70


28-Feb 1-Mar bps change China 63.74 64.24 0.50 Hong Kong SAR 44.35 44.33 -0.01 Indonesia 136.76 136.31 -0.45 Japan 70.60 70.62 0.01 Korea 66.20 66.58 0.38 Malaysia 76.53 76.54 0.01 Philippines 98.89 98.99 0.10 Thailand 89.74 90.25 0.51 Vietnam 209.46 209.51 0.05


1-Mar 4-Mar % change Gold Spot (in US$ per ounce)

1,576.2 1,579.4 0.20


of 8

CREDIT RATINGS S&P Moody's Fitch China AA- Aa3 A+ Hong Kong AAA Aa1 AA+ Indonesia BB+ Baa3 BBB- Japan AA- -- AA Korea A Aa3 A+ Malaysia A- A3 A- Philippines BB+ Ba1 BB+ Singapore AAA -- AAA Thailand BBB+ Baa1 BBB Vietnam BB- B1 B+



China 3,206.1 3,240.0 3,240.0 3,272.9 3,285.1 3,287.4 3,297.7 3,311.6 n.a Hong Kong SAR 291.9 295.0 296.3 298.2 301.2 301.7 305.2 317.3 321.0 Indonesia 111.5 106.5 106.6 109.0 110.2 110.3 111.3 112.8 108.8 Japan 1,277.7 1,270.5 1,272.8 1,273.2 1,277.0 1,274.2 1,270.9 1,268.1 1,267.3 Korea 310.9 312.4 314.4 316.9 322.0 323.5 326.1 327.0 328.9 Malaysia 136.0 134.2 134.5 134.9 137.5 138.3 139.1 139.7 140.2 Philippines 76.1 76.1 79.8 80.7 82.0 81.7 83.9 83.8 85.3 Singapore 237.7 243.4 244.1 246.2 252.1 254.2 255.8 259.3 258.8 Thailand 172.6 174.7 175.3 179.2 183.6 181.5 181.6 181.6 181.6 Vietnam 19.9 19.7 20.0 20.8 21.3 n.a n.a n.a n.a Note: Data for China and Vietnam refer to FX reserves EXTERNAL LIQUIDITY RATIOS





short-term debt (US$bn) (US$bn) (US$bn) by reserves) China 3,311.6 504.3 572.8 6.6 5.8 Hong Kong SAR 321.0 144.7 711.2 2.2 0.5 Indonesia 108.8 50.3 43.9 2.2 2.5 Japan 1,267.3 70.4 2,255.1 18.0 0.6 Korea 327.0 150.9 126.7 2.2 2.6 Malaysia 139.7 59.2 32.4 2.4 4.3 Philippines 83.8 19.3 8.0 4.4 10.5 Singapore 259.3 118.6 924.3 2.2 0.3 Thailand 181.6 68.0 57.2 2.7 3.2 Vietnam n.a 25.4 10.0 - -


DATA RELEASES FOR THE DAY Country Indicators Period Last Previous

SOUTH KOREA Core Consumer Price Index(YoY)% Feb 1.3 1.2 SOUTH KOREA Consumer Price Index (YoY)% Feb 1.4 1.5 SOUTH KOREA Consumer Price Index (MoM)% Feb 0.3 0.6 SOUTH KOREA HSBC Manufacturing PMI Feb 50.9 49.9 HONG KONG Retail Sales - Volume (YoY)% Jan 10.4 8.1 HONG KONG Retail Sales - Value (YoY)% Jan 10.5 8.8

of 8

SELECTED ECONOMIC RELEASES CALENDAR (04 Mar 08 Mar 2013) Expected Release Date Country Indicators Period 3/4/2013 INDONESIA Consumer Confidence Index Feb SOUTH KOREA Core Consumer Price Index(YoY)% Feb SOUTH KOREA Consumer Price Index (YoY)% Feb SOUTH KOREA Consumer Price Index (MoM)% Feb SOUTH KOREA HSBC Manufacturing PMI Feb HONG KONG Retail Sales - Volume (YoY)% Jan HONG KONG Retail Sales - Value (YoY)% Jan INDONESIA Net Foreign Assets (IDR Tln) Feb INDONESIA Foreign Reserves (USD bn) Feb 3/5/2013 HONG KONG Purchasing Managers Index Feb CHINA China HSBC Services PMI Feb PHILIPPINES Consumer Price Index (YoY)% Feb 3/6/2013 PHILIPPINES Budget Deficit/Surplus (PHP bn) Dec SOUTH KOREA Foreign Exchange Reserve (USD bn) Feb 3/7/2013 SINGAPORE Foreign Reserves (USD mn) Feb JAPAN Official Reserve Assets (USD bn) Feb MALAYSIA Foreign Reserves (USD bn) Feb 28 HONG KONG Foreign Currency Reserves (USD bn) Feb MALAYSIA Overnight Rate % Mar 7 INDONESIA Bank Indonesia Reference Rate% Mar 7 THAILAND Consumer Confidence Economic Feb PHILIPPINES Foreign Reserves (USD mn) Feb 3/8/2013 THAILAND Foreign Reserves (USD bn) Mar 1 CHINA Imports YoY% Feb CHINA Exports YoY% Feb CHINA Trade Balance (USD bn) Feb JAPAN Current Account Balance YOY% Jan JAPAN Current Account Total (JPY bn) Jan JAPAN Gross Domestic Product (QoQ)% 4Q F JAPAN GDP Annualized % 4Q F JAPAN Nominal GDP (QoQ)% 4Q F




MARKET DEVELOPMENTS

Asian stocks advance after two-day loss on stimulus bets. Asian markets were higher amid speculation central bankers will continue stimulus measures and as China maintained its economic-growth target for 2013. The Shanghai Composite Index rose 2.3 percent, after suffering its worst day of trading on Monday since August 2011. Stocks were also recovering in Hong Kong, where the Hang Seng Index added 0.1 percent. In Japan, the Nikkei Stock Average rose 0.3 percent and South Korea's Kospi Composite rose 0.2 percent. European stocks climbed to a 4 1/2-year high while futures on the S&P 500 were little changed.

Yen rises as buying by Japanese investors outweighs speculative selling. The yen strengthened against many other major currencies in Asia as buying by Japanese institutional investors outweighed speculative selling amid expectations for more aggressive monetary easing by the Bank of Japan. The dollar was at 93.10 as of 0450 GMT from 93.49 late Monday in New York. The euro was at 121.39 from 121.76, and $1.3034 from $1.3027. The pound was at $1.5127 from $1.5105. At 0435 GMT spot gold in Asian trading was at $1,579.80 a troy ounce--up $5.20 from its previous close.

BREAKING NEWS

GLOBAL

EU opens way for easier budgets after austerity backlash. European finance ministers opened the way for looser budget policies after a backlash against austerity thrust Italy into political limbo and shattered months of relative stability in European markets. Italys deadlocked election, Frances refusal to make deeper budget cuts and protests against the shrinking of the welfare state across southern Europe escalated the rebellion against the German-led prescription for fighting the debt crisis. Economic strains may also justify in a certain number of cases reviewing deadlines for the correction of excessive deficits, European Union Economic and Monetary Commissioner Olli Rehn told reporters late yesterday after a meeting of euro-area finance ministers in Brussels. The euro-zone economy will shrink 0.3 percent in 2013, making for the first annual back-to-back contraction since the currencys birth in 1999, the European Commission forecast last month.

US budget crisis eases as Republicans seek to avoid shutdown. Tension over the U.S. fiscal crisis eased as President Barack Obama called more opposition lawmakers to find a way to stop $85 billion in damaging budget cuts and congressional Republicans announced a plan to prevent a government shutdown. Eager to resolve fiscal fights overshadowing his second term, the Democratic president called Maine Republican Senator Susan Collins and Oklahoma Republican Senator Tom Coburn after speaking to other Republican senators over the weekend. An aide to Collins said that the pair discussed the need for a bipartisan agreement on critical issues such as reining in the $16.7 trillion federal debt and dealing with the cuts, also known as sequestration.

of 8

Australia's Central Bank holds rates. Australia's central bank left interest rates unchanged for the second month in a row, indicating growing satisfaction that steep rate cuts over more than a year are beginning to spur the nation's economy. The Reserve Bank of Australia kept the benchmark cash-rate target at 3 percent, a low previously reached in the aftermath of the global financial crisis. Most economists had expected no change. Gov. Glenn Stevens cited a modest improvement in non-mining parts of Australia's resource-rich economy and increasing ease about conditions in Europe and China. The Australian dollar soared after the announcement.

REGIONAL

China puts focus on consumers to drive growth. China put its fast-growing consumer class at centre-stage as outgoing Premier Wen Jiabao set out a reform plan to spread the fruits of economic growth more evenly in the country of 1.3 billion. Premier Wen said unleashing the power of China's consumers was vital to the future of the world's second biggest economy and called for accelerated reform of the rigid hukou household registration system to drive an urbanisation effort that he said underpinned the country's programme of economic development. Wen made consumers the cornerstone of an economic strategy designed to deliver an overall growth target of 7.5 percent in 2013. Rebalancing growth away from the investment-driven, export-oriented model that has delivered three decades of double digit growth, lifted hundreds of millions of people from rural poverty and turned China into the world's biggest trading economy, has been a policy priority for much of Wen's decade in office.

South Korea to meet emitters before start of carbon trading in 2015. South Koreas government plans to meet in May with the nations biggest emitters to provide information about the start of cap and trade in 2015. The government plans to select an exchange for greenhouse-gas emissions in the second half of this year and decide how to allocate free allowances to an estimated 480 emitters by June 2014. Trials for carbon trading are set to start in June 2014, Lee Hyung Sup, a deputy-director at the Ministry of Environment said. South Korea last month inaugurated President Park Geun Hye and has pledged a 30 percent cut in emissions by 2020 from forecast levels.

Economic restructuring and wage credit to dominate Budget debate in Singapore. Two issues look set to dominate the Budget debate that starts today: The restructuring of the economy and the new Wage Credit Scheme to help raise the income of Singaporean workers. While some Members of Parliament will call for a less hurried pace of restructuring and more help for small businesses, others worry about the effectiveness of the Wage Credit Scheme. Mr Ong Teng Koon is convinced the emphasis on productivity for restructuring is the only way to maintain high-quality and sustainable growth. He is among 60 MPs expected to speak during the three-day debate.

Myanmar vows new openness for oil and gas industry. Myanmar pledged a new era of transparency in its oil and gas industry. Speaking at a conference attended by several major foreign oil firms in Yangon, energy ministry officials said international standards would be upheld in auctions for the rights to lucrative energy reserves. "Transparency is the most important word," said the ministry's assistant director Aung Kyaw Htoo. "That's why the government initiated the EITI process," he added, referring to the Extractive Industries Transparency Initiative, an international scheme to ensure ordinary people share the rewards of a country's natural bounty.

of 8

Philippines CPI rises less-than-expected. Consumer price inflation in the Philippines rose less-than-expected in the last quarter, official data showed. In a report, Bangko Sentral ng Pilipinas said that Philippines CPI rose to a seasonally adjusted annual rate of 0.3 percent, from 0.5 percent in the preceding quarter.


ADB Press Release: New Index Shows Asia Is Closer But Future Cooperation Will Be Hard Won

Asia has become increasingly integrated over the past decade, led by growing trade and tourism and, most recently, as the region faced down the global financial crisis and subsequent eurozone crisis, according to a new integration index published in the Asian Development Banks (ADB) latest Asian Economic Integration Monitor. The report warns that the struggles of the eurozone and the fear of the contagion that accompanies greater integration could give Asias policymakers pause as they assess the way forward for their region. More multilateralized agreements like the ASEAN Free Trade Area, which involves a growing number of countries in and outside of Asia, would increase global trade, and thus income gains, in the absence of a global trade deal, the report says.

http://www.adb.org/news/new-index-shows-asia-closer-future-cooperation-will-be-hard-won

BIS Speech: Benoit Coeure: Revisiting the European social contract The BIS has publicised the speech made by Mr Benoit Coeure, Member of the Executive

Board of the European Central Bank, at the European Conference at Harvard Europe 2.0 taking the next step, Cambridge MA, 2 March 2013.

http://www.bis.org/review/r130304b.pdf BIS Speech: Janet L Yellen: Challenges confronting monetary policy

The BIS has publicised the speech made by Ms Janet L Yellen, Vice Chair of the Board of Governors of the Federal Reserve System, at the 2013 National Association for Business Economics Policy Conference, Washington DC, 4 March 2013.

http://www.bis.org/review/r130304a.pdf BIS Speech: Yves Mersch: The European banking union - first steps on a long march

The BIS has publicised the speech made by Mr Yves Mersch, Member of the Executive Board of the European Central Bank, at the Finanzplatztag, Frankfurt am Main, 27 February 2013.

http://www.bis.org/review/r130304c.pdf G20 Press Release: G20 Sherpas Meeting was held in Moscow

During the meeting Sherpas discussed the main outcomes of the first Finance Ministers and Central Bank Governors' Meeting, which had been held on February 15-16, 2013. Sherpas considered such issues as implementation of the Framework for Strong, Sustainable and Balanced Growth; financing for investment; reform of international financial architecture; financial regulation; and impact of structural reforms on growth. In the course of the meeting reports were also presented on the results of the working groups' meetings held recently - Energy Sustainability Working Group (ESWG), Task

of 8

Force on Employment (ETF), Anti-Corruption Working Group (ACWG) and Development Working Group (DWG).

http://www.g20.org/news/20130304/781253478.html IFC Press Release: IFC Helps Odisha Boost Private Investments, Enhance Economic Opportunities for Indias Development

IFC is working in Indias state of Odisha to promote private sector-led growth in the strategic sectors of agribusiness and tourism, catalyzing investments and creating jobs. Through a three-year partnership, IFC will work with the state government to streamline regulation for investment, identify areas for improvement, and tap into opportunities in the private sector. IFCs strategy in India is to work in priority states like Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh, and West Bengal, and also in the Northeastern states, including Sikkim. IFC is working on a tax simplification project in Bihar, and is supporting Rajasthan in promoting private investments in sectors such as automotive, information technology, solar, and tourism.

http://www.ifc.org/IFCExt/Pressroom/IFCPressRoom.nsf/0/D0AE521A99E6BE4685257B240041AD38

OECD Press Release: South Africa: Progress made but step up economic reforms to achieve full potential

South Africa must step up efforts to foster strong, inclusive economic growth that creates jobs, according to the OECDs latest Economic Survey of South Africa. Priorities include a growth-enhancing macroeconomic policy-mix, and better implementation of structural reforms, notably to improve education. South Africa has recorded tremendous success in a number of economic and social policies OECD Secretary-General Angel Gurra said. Per capita income is rising, public services are expanding, health indicators are improving and public finances are in better shape than in many OECD countries. However, the country is growing at a slower pace than other leading emerging economies, according to the Survey. Income inequality remains high, educational outcomes should be improved and access to education needs to be inclusive. Environmental challenges like climate change and water scarcity need to be tackled to make economic growth green and sustainable. There is unfinished business that will require additional reform efforts. Mr Gurria said. http://www.oecd.org/newsroom/progressinsouthafrica-butstepupeconomicreformstoachievefullpotential.htm (Press Release) http://www.oecd.org/about/secretary-general/launch-of-the-2013-economic-survey-of-south-africa.htm (Full Speech)

http://www.oecd.org/eco/surveys/southafrica2013.htm (Economic Survey of South Africa 2013)

UNCTAD Press Release: UNCTAD and Eurasian Economic Commission to enhance cooperation

UNCTAD and the Eurasian Economic Commission (EAEC) have agreed to sign a memorandum of cooperation to carry out joint work in a number of fields. The UNCTAD Secretary-General has met with EAEC Trade Minister Andrey Slepnev to discuss future cooperation with the new regional body, which began its activities in 2012. The meeting outlined prospective areas of collaboration between the two organizations, including regional integration, trade and competition policy,

of 8

facilitation of customs procedures, entrepreneurship development, transport and statistics.

http://unctad.org/en/pages/newsdetails.aspx?OriginalVersionID=407&Sitemap_x0020_Taxonomy=Technical%20Cooperation;#20;#UNCTAD Home

WB Press Release: Africas Food Markets Could Create One Trillion Dollar Opportunity by 2030

Africas farmers and agribusinesses could create a trillion-dollar food market by 2030 if they can expand their access to more capital, electricity, better technology and irrigated land to grow high-value nutritious foods, and if African governments can work more closely with agribusinesses to feed the regions fast-growing urban population, according to a new World Bank report launched today. The report says agriculture and agribusiness should be at the top of the development and business agenda in Sub-Saharan Africa. Concluding on an upbeat note, the report says Africa can draw on many local successes to guide governments and investors toward positive economic, social and environmental outcomes. http://www.worldbank.org/en/news/press-release/2013/03/04/africas-food-markets-could-create-one-trillion-dollar-opportunity-2030 (Press Release) http://www.worldbank.org/en/news/feature/2013/03/04/africa-agribusiness-report (Feature Story)

WB Press Release: Brazil: President Kim praises Bahia Hospital for giving Poor better access to Healthcare

Hospital do Suburbio, the first state hospital built in Salvadors metropolitan area is a public-private partnership assisted by the IFC. It has created 1,200 local jobs in a successful business model that six other Brazilian states have begun to adopt. This is an example of what we can do by working with the state and bringing the expertise of the private sector to provide high quality health services to those without access, said World Bank Group President Jim Kim after touring the facilities. Salvador was Kims first stop in a three-day official visit to Brazil. He said hed made the northeastern state his first port of call because the Banks partnership with the state of Bahia reflects well the vision and results that we can achieve together, with one shared goal: helping reduce poverty, while creating opportunities for all citizens. http://www.worldbank.org/en/news/feature/2013/03/04/brazil-hospital-bahia-health-innovative




(%chg) China 6.23 6.22 6.23 6.22 0.06 0.2 Hong Kong SAR 7.75 7.75 7.76 7.76 -0.01 -0.1 Indonesia 9,793.00 9,682.00 9,714.00 9,696.00 0.19 -0.4 Japan 86.75 93.59 93.48 93.05 0.46 -6.1 Korea 1,064.40 1,084.56 1,093.24 1,087.04 0.57 -2.2 Malaysia 3.06 3.10 3.11 3.10 0.20 -2.1 Philippines 41.01 40.69 40.80 40.72 0.20 0.3 Singapore 1.22 1.24 1.25 1.25 0.00 -2.0 Thailand 30.59 29.76 29.82 29.79 0.10 1.8 Vietnam 20,840.00 20,925.00 20,965.00 20,993.00 -0.13 -0.7


of 8

STOCK MARKET INDEX



(%chg) China 2,269.1 2,359.5 2,273.4 2,326.3 2.33 2.5 Hong Kong SAR 22,656.9 22,880.2 22,537.8 22,560.5 0.10 -3.2 Indonesia 4,316.7 4,811.6 4,761.5 4,751.7 -0.20 9.3 Japan 10,395.2 11,606.4 11,652.3 11,683.5 0.27 12.4 Korea 1,997.1 2,026.5 2,013.2 2,016.6 0.17 -0.7 Malaysia 1,689.0 1,637.4 1,636.0 1,642.1 0.37 -1.9 Philippines 5,812.7 6,642.3 6,637.6 6,711.7 1.12 14.5 Singapore 3,167.1 3,269.5 3,240.0 3,248.3 0.26 1.5 Thailand 1,391.9 1,539.6 1,540.7 1,551.8 0.72 10.3 Vietnam 413.7 477.2 468.7 462.1 -1.41 10.5

OVERNIGHT LENDING RATE (%) 3-MONTH INTERBANK LENDING RATE (%) 4-Mar 5-Mar bps change 4-Mar 5-Mar bps change China 3.290 3.010 -28.00 3.892 3.892 -0.02 Hong Kong SAR 0.091 0.091 0.00 0.383 0.383 0.00 Indonesia 4.180 4.180 0.00 4.901 4.901 0.00 Japan 0.100 0.095 -0.50 0.266 0.261 -0.50 Korea 2.750 2.750 0.00 2.760 2.760 0.00 Malaysia 3.000 3.000 0.00 3.210 3.210 0.00 Philippines 0.966 1.058 9.20 0.405 0.563 15.80 Singapore 0.050 0.050 0.00 0.375 0.375 0.00 Thailand 2.750 2.750 0.00 2.862 2.862 0.00 Vietnam 1.800 1.930 13.00 6.000 6.000 0.00


1-Mar 4-Mar bps change China 64.24 66.27 2.03 Hong Kong SAR 44.33 44.32 -0.01 Indonesia 136.31 137.88 1.57 Japan 70.62 68.21 -2.41 Korea 66.58 68.24 1.66 Malaysia 76.54 78.08 1.54 Philippines 98.99 101.10 2.11 Thailand 90.25 91.30 1.06 Vietnam 209.51 212.46 2.96


4-Mar 5-Mar % change Gold Spot (in US$ per ounce)

1,573.8 1,579.6 0.37


CREDIT RATINGS

S&P Moody's Fitch China AA- Aa3 A+ Hong Kong AAA Aa1 AA+ Indonesia BB+ Baa3 BBB- Japan AA- -- AA Korea A Aa3 A+ Malaysia A- A3 A- Philippines BB+ Ba1 BB+ Singapore AAA -- AAA Thailand BBB+ Baa1 BBB Vietnam BB- B1 B+

of 8



China 3,206.1 3,240.0 3,240.0 3,272.9 3,285.1 3,287.4 3,297.7 3,311.6 n.a Hong Kong SAR 291.9 295.0 296.3 298.2 301.2 301.7 305.2 317.3 321.0 Indonesia 111.5 106.5 106.6 109.0 110.2 110.3 111.3 112.8 108.8 Japan 1,277.7 1,270.5 1,272.8 1,273.2 1,277.0 1,274.2 1,270.9 1,268.1 1,267.3 Korea 310.9 312.4 314.4 316.9 322.0 323.5 326.1 327.0 328.9 Malaysia 136.0 134.2 134.5 134.9 137.5 138.3 139.1 139.7 140.2 Philippines 76.1 76.1 79.8 80.7 82.0 81.7 83.9 83.8 85.3 Singapore 237.7 243.4 244.1 246.2 252.1 254.2 255.8 259.3 258.8 Thailand 172.6 174.7 175.3 179.2 183.6 181.5 181.6 181.6 181.6 Vietnam 19.9 19.7 20.0 20.8 21.3 n.a n.a n.a n.a Note: Data for China and Vietnam refer to FX reserves EXTERNAL LIQUIDITY RATIOS





short-term debt (US$bn) (US$bn) (US$bn) by reserves) China 3,311.6 504.3 572.8 6.6 5.8 Hong Kong SAR 321.0 144.7 711.2 2.2 0.5 Indonesia 108.8 50.3 43.9 2.2 2.5 Japan 1,267.3 70.4 2,255.1 18.0 0.6 Korea 327.0 150.9 126.7 2.2 2.6 Malaysia 139.7 59.2 32.4 2.4 4.3 Philippines 83.8 19.3 8.0 4.4 10.5 Singapore 259.3 118.6 924.3 2.2 0.3 Thailand 181.6 68.0 57.2 2.7 3.2 Vietnam n.a 25.4 10.0 - -


DATA RELEASES FOR THE DAY

Country Indicators Period Last Previous HONG KONG Purchasing Managers Index Feb 51.2 52.5 CHINA China HSBC Services PMI Feb 52.1 54.0 PHILIPPINES Consumer Price Index (YoY)% Feb 3.4 3.0 PHILIPPINES Budget Deficit/Surplus (PHP bn) Dec -115.74 -11.6

SELECTED ECONOMIC RELEASES CALENDAR (04 Mar 08 Mar 2013)

Expected Release Date Country Indicators Period 3/4/2013 INDONESIA Consumer Confidence Index Feb SOUTH KOREA Core Consumer Price Index(YoY)% Feb SOUTH KOREA Consumer Price Index (YoY)% Feb SOUTH KOREA Consumer Price Index (MoM)% Feb SOUTH KOREA HSBC Manufacturing PMI Feb HONG KONG Retail Sales - Volume (YoY)% Jan HONG KONG Retail Sales - Value (YoY)% Jan INDONESIA Net Foreign Assets (IDR Tln) Feb INDONESIA Foreign Reserves (USD bn) Feb 3/5/2013 HONG KONG Purchasing Managers Index Feb CHINA China HSBC Services PMI Feb PHILIPPINES Consumer Price Index (YoY)% Feb

of 8

3/6/2013 PHILIPPINES Budget Deficit/Surplus (PHP bn) Dec SOUTH KOREA Foreign Exchange Reserve (USD bn) Feb 3/7/2013 SINGAPORE Foreign Reserves (USD mn) Feb JAPAN Official Reserve Assets (USD bn) Feb MALAYSIA Foreign Reserves (USD bn) Feb 28 HONG KONG Foreign Currency Reserves (USD bn) Feb MALAYSIA Overnight Rate % Mar 7 INDONESIA Bank Indonesia Reference Rate% Mar 7 THAILAND Consumer Confidence Economic Feb PHILIPPINES Foreign Reserves (USD mn) Feb 3/8/2013 THAILAND Foreign Reserves (USD bn) Mar 1 CHINA Imports YoY% Feb CHINA Exports YoY% Feb CHINA Trade Balance (USD bn) Feb JAPAN Current Account Balance YOY% Jan JAPAN Current Account Total (JPY bn) Jan JAPAN Gross Domestic Product (QoQ)% 4Q F JAPAN GDP Annualized % 4Q F JAPAN Nominal GDP (QoQ)% 4Q F




MARKET DEVELOPMENTS

Asian stocks track the Dow's rise. Asian markets were higher with stocks in Japan and Australia reaching fresh multiyear highs, after the Dow Jones Industrial Average marked an all-time high Tuesday. The MSCI Asia Pacific Index gained 1.2 percent to 135.94 as of 5:57 p.m. in Tokyo. Japans Nikkei 225 Stock Average climbed 2.1 percent. Hong Kongs Hang Seng Index rose 1 percent, while Chinas Shanghai Composite Index increased 0.9 percent. South Koreas Kospi Index added 0.2 percent and Singapores Straits Times Index advanced 1.2 percent.

The dollar fell for a second day against most of its major counterparts before a private jobs report in the U.S. forecast to show companies added positions. The dollar lost 0.1 percent to $1.3062 per euro as of 7:28 a.m. in London after falling 0.2 percent to $1.3052 in New York. It was little changed at 93.34 yen from yesterday when it slid 0.2 percent. The euro traded at 121.93 yen from 121.76.

BREAKING NEWS

GLOBAL

Service industries in U.S. grow at fastest pace in a year. Service industries in the U.S. expanded in February at the fastest pace in a year as a recovery in housing rippled through the economy. The Institute for Supply Managements non-manufacturing index unexpectedly increased to 56 last month from 55.2 in January. Readings above 50 signal expansion in the industries comprising 90 percent of the economy. The fastest pace of new-home sales since 2008 is benefiting builders. Accelerating service orders, along with a pickup in manufacturing reported last week, show the economy is withstanding budget battles in Washington.

Merkel looks east for austerity allies in talks with Hollande. German Chancellor Angela Merkel is turning east as she pushes plans for a more competitive Europe, seeking to bring on board the leaders of Poland and other eastern countries as allies elsewhere prove hard to find. Merkel and French President Francois Hollande, the key players in the euro-area debt crisis, travel to Warsaw today for talks on closer European Union integration with Polish Prime Minister Donald Tusk and his peers from the Czech Republic, Slovakia and Hungary. The six leaders are due to hold a joint news conference at about 4 p.m. Warsaw time. As southern Europeans vilify Merkel for her austerity-led solution to the debt crisis, the head of Europes biggest economy is looking for support to the countries of the east she knows from childhood growing up in communist East Germany. Its the first time that French and German leaders are jointly attending the four-country forum.

Australia expands at fastest pace since 2007 on exports. Australias economy expanded in 2012 at the fastest pace in five years as resource investment and exports outweighed subdued manufacturing and construction. Gross domestic product grew 3.6 percent last year, the best performance since a 4.7 percent expansion in 2007, data from the Australian Bureau of Statistics showed. The economy grew 0.6 percent in the fourth

of 8

quarter from the previous three months, when it rose a revised 0.7 percent that was higher than initially reported.

REGIONAL

Korea joins Russia, Kazakhstan in boosting gold holdings. The Bank of Korea joined Russia and Kazakhstan in boosting gold holdings, even as the metal had its worst start to a year since 1991. The BOK added 20 metric tons in February, raising its gold reserves by 24 percent to 104.4 tons, it said in a statement today. Holdings rose about $1.03 billion by value to $4.79 billion at the end of last month, equivalent to 1.5 percent of total foreign exchange holdings, according to the statement. Russia and Kazakhstan expanded bullion reserves for a fourth straight month in January and the World Gold Council expects central banks to remain strong buyers this year after increasing purchases in 2012 by the most in almost five decades.

Trans-Pacific Partnership talk: Countries seek to protect favored industries from lifting of tariffs. The United States and 10 other countries will discuss which items can be excluded from the planned abolition of tariffs under the framework of the Trans-Pacific Partnership multinational free trade agreement during their latest session of talks being held in Singapore. The 16th session, which kicked off Monday to be held for 10 days, is the first TPP meeting since Prime Minister Shinzo Abe made it known that he intended to announce the nation's participation in the negotiations. Japan will gather information during the session but is not expected to be informed of certain key points of the discussions, a situation that highlights the need for Japan to make its official announcement as soon as possible so it can get involved in establishing TPP rules. Aiming to conclude negotiations by the end of this year, the 11 countries not only will discuss exceptions from tariff abolition--the core of the TPP framework--but also are expected to talk about how to deal with intellectual property and establishing rules regarding public works projects ordered by governments.

Malaysian Plantation Industries and Commodities Minister said palm climbing as economies recover, aging trees cut. Palm oil will probably advance as the global economy recovers and the government provides incentives for farmers to cut down old trees, said Malaysian Plantation Industries and Commodities Minister Bernard Dompok. Im bullish on prices, he said in an interview. Malaysia, the second-largest producer, has announced plans to encourage growers to remove 25-year-old trees that yield less oil on 300,000 hectares, and replant them. Trees on 100,000 hectares may be cut and replaced this year, lowering output by 400,000 metric tons and helping cap inventories, he said. It takes at least three to four years for palms to reach maturity. The country has 5 million hectares. Palm, which dropped 23 percent last year, is trading in a bear market after global supplies of the worlds most consumed oil expanded to the biggest ever.

Vietnam's export hits $18.97 bln in two months. Vietnam recorded an impressive export turnover of 18.97 billion USD in the first two months of 2013, which reflected a year-on-year increase of 23.9 percent. Of the figure, the export of foreign-invested businesses (excluding crude oil) was 11 billion USD, up 27.5 percent, according to the Import-Export Department under the Ministry of Industry and Trade (MoIT). In February, the countrys export reached 7.5 billion USD, down 34.6 percent from the previous month and 9.2 percent year-on-year due to the nine-day long Lunar New Year festival. Mobile phones and bags were the largest foreign currency earners during the period.

of 8

The MoITs statistics also showed that Vietnam enjoyed a two-month trade surplus of over 1.67 billion USD, equivalent to 8.8 percent of the total export turnover.

Cambodia launches arbitration body to deal with commercial disputes. Cambodia officially launched the long-awaited National Arbitration Center (NAC) on Monday, aiming at enhancing business environment and attracting more local and foreign investors. Speaking at the launching ceremony, Minister of Commerce Cham Prasidh said the government is committed to improving and enhancing Cambodia's business environment and investment climate for both domestic and foreign investors. He said one of the measures taken by the government to achieve this goal is the enactment of various commercial laws including the law on commercial arbitration that was adopted in 2006.


ADBI Newsletter: 2012 Volume 6 Number 4

The ADBI has publicised the Fourth Quarter 2012 edition of its quarterly newsletter. http://www.adbi.org/files/2013.03.newsletter.pdf

BIS Interview: Christian Noyer: "Noyer heralds new era for eurozone and for France" - Interview in Euroweek

The BIS has publicised the Interview made with Mr Christian Noyer, Governor of the Bank of France and Chairman of the Board of Directors of the Bank for International Settlements, in Euroweek France in the Capital Markets, 25 February 2013. http://www.bis.org/review/r130305e.pdf

BIS Remarks: Duvvuri Subbarao: Financial literacy and financial inclusion are integral to each other The BIS has publicised the Inaugural remarks made by Dr Duvvuri Subbarao, Governor of the

Reserve Bank of India, at the India-OECD-World Bank Regional Conference on Financial education, New Delhi, 4 March 2013 http://www.bis.org/review/r130305j.pdf

BIS Remarks: Pentti Hakkarainen: Debate on "Re-evaluating the universal banking model: Can the Volcker, Vickers or Liikanen rules make banks safer?"

The BIS has publicised the remarks made by Mr Pentti Hakkarainen, Deputy Governor of the Bank of Finland, at the 4th Future of Banking Summit, organised by Economist Conferences, Paris, 26 February 2013 http://www.bis.org/review/r130305h.pdf

BIS Speech: George A Provopoulos: Overview of recent developments in the Greek economy

The BIS has publicised the Speech made by Mr George A Provopoulos, Governor of the Bank of Greece, at the 80th AnnualMeeting of Shareholders, Athens, 25 February 2013.

http://www.bis.org/review/r130305f.pdf BIS Speech: Jerome H Powell: Ending too big to fail The BIS has publicised the Speech made by Mr Jerome H Powell, Member of the Board of

Governors of the Federal Reserve System, at the Institute of International Bankers 2013 Washington Conference, Washington DC, 4 March 2013.

http://www.bis.org/review/r130305b.pdf

of 8

BIS Speech: Lars Rohde: The European crisis and the development of the European Union The BIS has publicised the speech made by Mr Lars Rohde, Governor of the National Bank of

Denmark, at the European Affairs Committees consultation: The European crisis and the development of the European Union, former Upper Chamber of the Danish Parliament, Copenhagen, 26 February 2013.

http://www.bis.org/review/r130305i.pdf BIS Speech: Yves Mersch: Financial stability policies in central banks The BIS has publicised the speech made by Mr Yves Mersch, Member of the Executive Board of

the European Central Bank, at the seminar: Financial stability policies in a post-crisis world, Czech National Bank, Prague, 4 March 2013.

http://www.bis.org/review/r130305c.pdf

BIS Publication: International Journal of Central Banking (IJCB) The BIS has publicised the Mar 2013 edition of its quarterly magazine. This is a Special Issue:

Financial Crises: Causes, Consequences and Policy Options.

http://www.ijcb.org/journal/ijcb13q1a0.pdf

BIS Welcome Address: K C Chakrabarty: India-OECD-World Bank regional conference on "Financial education"

The BIS has publicised the welcome address made by Dr K C Chakrabarty, Deputy Governor of the Reserve Bank of India, at the India-OECD-World Bank Regional Conference on Financial education, New Delhi, 4 March 2013

http://www.bis.org/review/r130305k.pdf G20 Press Release: Business 20 presented to the G20 Sherpas its recommendations on trade On the second day of the meeting, the delegates were addressed by Co-Chair of the Business 20

Trade Taskforce Alexey Mordashov. "Promoting international trade and ensuring that supply chains can continue to evolve efficiently are of the issues of greatest importance and should remain one of the core items of the G20 agenda," - Alexey Mordashov emphasized. Trade is one of the tools that allow facilitating growth of the global economy in general, as well as growth in particular countries, through measures that are budget neutral. "Growing trade and expanding supply chains offer a 'win-win' potential. Let's make sure it does not become a missed opportunity," - Mr. Mordashov concluded. http://www.g20.org/news/20130304/781254163.html

IFC Press Release: IFC Study Finds Indian Small and Medium Enterprises have Huge Unmet Financing Demand

IFC has released a new study that finds financial institutions meet only one-fourth of the financing demand of micro, small and medium enterprises in India, noting that a sizeable part of this unfulfilled opportunity is viable. The study estimates the overall finance shortfall for micro, small and medium enterprises to be over $ 400 billion. Formal sources are able to channel only $ 140 billion. Banks can address the sectors debt and equity financing requirement of over $ 70 billion, it estimates. Micro, small and medium enterprises are an essential focus of IFC's work in South Asia. In addition to making investments in private sector projects, IFC works with governments to improve investment climate, builds skills of local entrepreneurs, and promotes access to finance and markets for small businesses. http://www.ifc.org/ifcext/pressroom/IFCPressRoom.nsf/0/65484B384D843F2F85257B26001176BB

of 8

IMF Country Report: Spain: Financial Sector ReformSecond Progress Report

The IMF has publicised the captioned country report. This report provides information and analysis on the status of Spains financial sector reform program. It touches on two main sections namely the Macro-financial context and Progress on financial sector reforms.

http://www.imf.org/external/pubs/ft/scr/2013/cr1354.pdf IMF Working Paper: External Linkages and Policy Constraints in Saudi Arabia

The IMF has publicised the captioned working paper. The constraints that external linkages impose on domestic policy choices in Saudi Arabia have continuously evolved over the past four decades. This paper argues that two major ongoing developments in particular have affected and will continue to affect policy trade-offs. First, growing oil needs of emerging market economies (EMEs), and specifically those of developing Asia, have strengthened economic links between the Far East and Saudi Arabia. Second, financial sector development in Saudi Arabia has gradually strengthened the monetary transmission mechanism. As a result, divergence between the growth cycles in developing Asia and the United States has the potential to increasingly generate tension between policy objectives in Saudi Arabia. http://www.imf.org/external/pubs/ft/wp/2013/wp1359.pdf

UNCTAD Press Release: Mission to Myanmar by United Nations Inter-Agency Cluster on Trade and Productive Capacity

UNCTAD, as coordinator of the United Nations Inter-Agency Cluster on Trade and Productive Capacity, has set up and participated in a five-day mission to Myanmar in cooperation with four other United Nations organizations. Among other results, cooperation involving streamlined work by United Nations agencies was envisaged in order to help the country to prepare a Diagnostic Trade Integration Study (DTIS) and to develop a joint action plan to link Myanmar more fully into the world trade system. Based on the results of the consultations held during the February mission, the Cluster will, by the end of March, propose to the Government of Myanmar a joint action plan that will include the Enhanced Integrated Framework process as well as preparation of the DTIS.

http://unctad.org/en/pages/newsdetails.aspx?OriginalVersionID=413&Sitemap_x0020_Taxonomy=UNCTAD%20Home;#1792;#UN-CEB Inter-agency Cluster

World Bank Speech: Statement by President Jim Yong Kim - Memorandum of Understanding Signing on Knowledge and Innovation Initiative in Brazil

The World Bank has publicised the statement made by World Bank President Jim Yong Kim in Brazil.

http://www.worldbank.org/en/news/speech/2013/03/05/memorandum-understanding-signing-knowledge-innovation-initiative-brazil-statement-world-bank-group-president-jim-yong-kim

World Bank Speech: Transcript of Media Roundtable with President Jim Yong Kim in Brasilia, Brazil

The World Bank has publicised the statement made by World Bank President Jim Yong Kim in Brasilia, Brazil.

http://www.worldbank.org/en/news/speech/2013/03/05/media-roundtable-world-bank-group-president-jim-yong-kim-brasilia-brazil

of 8




(%chg) China 6.23 6.22 6.22 6.22 0.05 0.2 Hong Kong SAR 7.75 7.75 7.76 7.76 -0.01 -0.1 Indonesia 9,793.00 9,682.00 9,696.00 9,693.00 0.03 -0.4 Japan 86.75 93.59 93.29 93.43 -0.15 -6.5 Korea 1,064.40 1,084.56 1,087.04 1,082.60 0.41 -1.8 Malaysia 3.06 3.10 3.10 3.10 -0.13 -2.2 Philippines 41.01 40.69 40.72 40.73 -0.01 0.3 Singapore 1.22 1.24 1.25 1.25 0.05 -2.0 Thailand 30.59 29.76 29.76 29.73 0.10 2.0 Vietnam 20,840.00 20,925.00 20,993.00 20,950.00 0.21 -0.5


STOCK MARKET INDEX



(%chg) China 2,269.1 2,359.5 2,326.3 2,347.2 0.90 3.4 Hong Kong SAR 22,656.9 22,880.2 22,560.5 22,777.8 0.96 -2.3 Indonesia 4,316.7 4,811.6 4,751.7 4,824.7 1.54 11.0 Japan 10,395.2 11,606.4 11,683.5 11,932.3 2.13 14.8 Korea 1,997.1 2,026.5 2,016.6 2,020.7 0.20 -0.5 Malaysia 1,689.0 1,637.4 1,642.1 1,651.8 0.59 -1.4 Philippines 5,812.7 6,642.3 6,711.7 6,835.2 1.84 16.6 Singapore 3,167.1 3,269.5 3,248.3 3,288.2 1.23 2.7 Thailand 1,391.9 1,539.6 1,549.3 1,559.3 0.64 10.8 Vietnam 413.7 477.2 462.1 471.1 1.94 12.6

OVERNIGHT LENDING RATE (%) 3-MONTH INTERBANK LENDING RATE (%) 5-Mar 6-Mar bps change 5-Mar 6-Mar bps change China 3.010 2.850 -16.00 3.892 3.887 -0.52 Hong Kong SAR 0.091 0.091 0.00 0.383 0.383 0.00 Indonesia 4.180 4.180 0.00 4.901 4.900 -0.07 Japan 0.095 0.095 0.00 0.261 0.257 -0.42 Korea 2.750 2.750 0.00 2.760 2.760 0.00 Malaysia 3.000 3.000 0.00 3.210 3.210 0.00 Philippines 1.058 0.814 -24.40 0.563 0.327 -23.60 Singapore 0.041 0.041 0.00 0.375 0.375 0.00 Thailand 2.750 2.750 0.00 2.862 2.862 0.00 Vietnam 1.930 1.900 -3.00 6.000 6.100 10.00


4-Mar 5-Mar bps change China 66.27 62.83 -3.44 Hong Kong SAR 44.32 43.35 -0.97 Indonesia 137.88 136.96 -0.92 Japan 68.21 66.25 -1.96 Korea 68.24 65.29 -2.95 Malaysia 78.08 76.13 -1.95 Philippines 101.10 98.24 -2.86 Thailand 91.30 89.37 -1.94 Vietnam 212.46 207.88 -4.58


5-Mar 6-Mar % change Gold Spot

Date post:	10-Mar-2016
Category:	Documents
Upload:	nanthiporn-chuadai
View:	220 times
Download:	2 times

Market Update for ASEAN+3 March2013

Documents