Further stimulus for China property sector

FX views: Amid the background of a 0.5% fall in the Dollar Index, emerging Asian currencies displayed divergent performances. Chinese yuan appreciated, followed by Taiwan dollar, Philippines peso, Singapore dollar and Hong Kong dollar. Thai baht weakened by 1.1% against a weaker dollar due to weak domestic economic data releases.

Week in review: China authorities aim to roll out additional policies in stimulating the sector and the overall economy. Thailand’s economy slowed to 1.5%yoy in the third quarter of 2023, while Singapore economy grew 1.1%yoy in Q3, higher than Q2. In October, Malaysia’s trade stats improved and beat market expectation, with exports growth improving to -4.4%yoy from September’s -13.7%yoy. Taiwan’s export orders continued to decline in 14 consecutive months, down 4.6%yoy in October, but the contraction narrowed from -15.6%yoy in September.

Central bank monitor: The PBOC kept its 1-year and 5-year LPR rates stable at 3.45% and 4.20% respectively. Bank Indonesia kept its 7-day reverse repo rate unchanged at 6.00%. We will have Bank of Thailand’s policy decision this week, where we expect no change in rates.

Week ahead: Asian calendar features 3QGDP for Taiwan, exports for Hong Kong, Thailand and South Korea, industrial production for Singapore, PMI for China, South Korea, Taiwan, Vietnam and Indonesia, retail sales data for Hong Kong, inflation report for Indonesia, as well as rate decisions from BoT.

PBOC KEPT ITS 1-YEAR AND 5-YEAR LOAN PRIME RATE UNCHANGED