ASEAN Morning Bytes
Asian markets to track gains overnight but take further direction from China data
EM Space: Strong US data to bolster sentiment on Friday
- General Asia: Asian markets will likely track gains overnight with optimism driven by positive US data highlighted by retail sales. Investors now turn their focus to a string of China data reports out today (GDP, retail sales and industrial production) while looking out for US consumer sentiment numbers as well. Market players will also be monitoring the fallout from sanctions imposed by the US on Russia, the meeting between Biden and Japan’s Suga over the weekend while monitoring developments on the Covid-19 front for more direction.
- Singapore: In yet another big upside surprise to market expectations, the March non-oil domestic exports surged by 12.1% YoY and 1.2% MoM SA. The acceleration of year-on-year growth from 4.2% in February underscores a steady export-driven recovery in the Singaporean economy. Electronics remained the key NODX driver with a 24.4%YoY bounce, up from 7.4% in February, as ongoing global chip shortages have been buoying semiconductor exports (up 19% YoY). Pharmaceuticals also helped with more than a 25% YoY surge in shipments. The NODX data heralds strong manufacturing growth in March, lifting 1Q21 GDP growth further up from the +0.2% YoY advance estimate released earlier this week. We believe the MAS will see through the recent export strength and maintain its neutral policy stance again in the next semi-annual policy review scheduled in October 2021.
- Philippines: President Duterte lifted the 9-year ban on new mining that would allow new entrants into the sector as well as permit existing mining deals to enter renegotiations. After the implementation of an executive order, the Department of environment and natural resources will need to formulate the implementation of rules and regulations for these new mining arrangements. Although mining activities account for less than 1% of GDP, authorities hope to attract up to $12 bn in fresh investments over a period of roughly 5 years.
What to look out for: China GDP and Covid-19 developments
- China GDP, retail sales, industrial production (16 April)
- US housing starts and University of Michigan sentiment (16 April)
Download
Download article
16 April 2021
Good MornING Asia - 16 April 2021 This bundle contains {bundle_entries}{/bundle_entries} articles"THINK Outside" is a collection of specially commissioned content from third-party sources, such as economic think-tanks and academic institutions, that ING deems reliable and from non-research departments within ING. ING Bank N.V. ("ING") uses these sources to expand the range of opinions you can find on the THINK website. Some of these sources are not the property of or managed by ING, and therefore ING cannot always guarantee the correctness, completeness, actuality and quality of such sources, nor the availability at any given time of the data and information provided, and ING cannot accept any liability in this respect, insofar as this is permissible pursuant to the applicable laws and regulations.
This publication does not necessarily reflect the ING house view. This publication has been prepared solely for information purposes without regard to any particular user's investment objectives, financial situation, or means. The information in the publication is not an investment recommendation and it is not investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Reasonable care has been taken to ensure that this publication is not untrue or misleading when published, but ING does not represent that it is accurate or complete. ING does not accept any liability for any direct, indirect or consequential loss arising from any use of this publication. Unless otherwise stated, any views, forecasts, or estimates are solely those of the author(s), as of the date of the publication and are subject to change without notice.
The distribution of this publication may be restricted by law or regulation in different jurisdictions and persons into whose possession this publication comes should inform themselves about, and observe, such restrictions.
Copyright and database rights protection exists in this report and it may not be reproduced, distributed or published by any person for any purpose without the prior express consent of ING. All rights are reserved.
ING Bank N.V. is authorised by the Dutch Central Bank and supervised by the European Central Bank (ECB), the Dutch Central Bank (DNB) and the Dutch Authority for the Financial Markets (AFM). ING Bank N.V. is incorporated in the Netherlands (Trade Register no. 33031431 Amsterdam).