Chief Economist ANDBANK
What's new in Asia (our most preferred region) ...
. .. Just 4 aspects worth mentioning:
The CNY strength was ignited by comments from the
country's chief statistician at the sideline of the 18th
Communist Party Congress that October data would boost
confidence in the ongoing recovery.
Asian rates responded unanimously. Hong Kong and China
bonds led the gain in prices, with their respective 2s10s
spreads flattenning by 6bp and 3bp. Curves elsewhere were also
mostly bull-flattened. (Remember here our very positive outlook
for asian government bonds in 2013)
Of two central bank meetings today, it is expected both to
stand pat but BNM (Malaysia) to switch to a more dovish (and
thus, easing) posture. Thus, maybe the best investment option
for the next months will be medium-term (5years) MGS (Malaysia
China's communist party election just started today which
will last for a week ending 14 Nov. Any announcements will only
be made after that from 15 November onwards. During this
period, it is expected the PBOC to maintain status quo in both
FX and rates. The central bank withdrew CNY101bn from the
system through its open market operations this week, partially
negating the record CNY379bn injection from last week. (...
No more relevant news