Consumer price inflation in the Republic of Korea accelerated to 4.7% year-on-year (y-o-y) in July from 4.4% in June while in Viet Nam it rose to 22.2% y-o-y in July compared with 20.8% in June. In Singapore, consumer price inflation surged to 5.2% y-o-y in June from 4.5% in May on account of higher costs for housing, transport, and food. In Japan, consumer price inflation eased to 0.2% y-o-y in June from 0.3% in May. 

* On 28 July, the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) decided to keep the rates steady for its overnight borrowing and overnight lending facilities at 4.5% and 6.5%, respectively. Meanwhile, the reserve requirement ratio for banks and non-bank financial institutions (with a quasi-banking license) was raised by 1 percentage point from 20% to 21%, effective 5 August. 

* Last week, Standard & Poor's (S&P) lowered Malaysia's local currency (LCY) long-term sovereign credit rating from A+ to A with a stable outlook following the implementation of a revised methodology for sovereign ratings. Meanwhile, S&P affirmed Malaysia's LCY short-term rating at A-1 and foreign currency (FCY) long-term and short-term ratings at A- and A-2, respectively. 

* In Hong Kong, China, a trade deficit of HKD40.3 billion was recorded in June. In the Republic of Korea, merchandise trade surplus widened to USD7.2 billion in July from USD2.8 billion in June on the back of strong export growth. In the Philippines, the trade deficit in goods climbed to USD780 million in May. In Thailand, the trade surplus was registered at USD1.9 billion in June. 

* The Republic of Korea's gross domestic product (GDP) grew 3.4% y-o-y in 2Q11, based on advanced estimates of The Bank of Korea. Industrial output in the Republic of Korea grew 6.4% y-o-y in June. In the People's Republic of China (PRC), manufacturing PMI fell for the fourth straight month in July to 50.7. In the Philippines, the volume of production index for total manufacturing eased in May to 0.9% y-o-y from 2.7% in April. In Singapore, manufacturing output expanded 10.5% y-o-y in June, while in Thailand manufacturing production increased for the first time in 5 months to 3.3% y-o-y in June. In Viet Nam, the index of industrial production increased 9.6% y-o-y in July, down from 12.7% growth posted in June. 

* Notable issuance from emerging East Asia last week included Citic Pacific's CNH1 billion 5-year bond at a yield of 2.3% and China Resources Land's additional USD250 million via a tap on its 5-year bonds issued in May. Hong Kong, China issued inflation-linked iBonds for the first time, offering HKD10.0 billion worth of 3-year bonds. Also, Syarikat Prasarana Negara Berhad (Prasarana) priced MYR2 billion worth of 10- and 15-year Islamic medium-term notes. Korea South-East Power (KOSEP) issued a USD300 million 5.5-year bond at a coupon rate of 3.625%. Singapore's real estate developer Wing Tai Holdings issued a total of SGD125 million of senior notes last week. Thailand's state-owned Bangkok Mass Transit System (BMTS) issued a total of THB3.9 billion of bonds, and state-owned Provincial Electricity Authority issued THB1.1 billion of 10-year bonds with a coupon of 4.25%. 

* Government bond yields fell last week for all tenors in Indonesia, and for most tenors in the PRC; Hong Kong, China; Malaysia; the Philippines; Singapore; and Thailand, while yields rose for most tenors in the Republic of Korea and Viet Nam. Yield spreads between 2- and 10- year maturities widened in Indonesia and Thailand, while spreads narrowed in most other emerging East Asian markets.