Asia

Debt capital market volume declined 42.4% to US$109.3b in Q3 2011.

There are 1228 issues year-to-date, marking the third highest level of ECM activity in Asia since 2007.

The country’s economy defied expectations as export volumes rose 20% YoY, contrary to the 2.5% drop pencilled in by market analysts.

However, underlying price pressures will likely remain high, making it difficult for inflation to fall below the 4% mark in the remaining months of this year.

This is a bit better than August’s 49.91, as the slowdown in China's manufacturing sector is showing signs of stabilizing.

DBS says manufacturing sector growth has softened as a result of weaker export demand.

As motor vehicle production improved this month, followed by a pick up in the food and petroleum sectors.

DBS blames the effects from the earlier arrival of the Chuseok holiday for the decline in exports.

And China is still the most targeted nation with US$103.5 billion or 30.5% of Asia Pacific-target M&A.

DBS says the strong ramp up in production should lift third quarter GDP growth to double-digits in September.

This self-imposed credit crunch increases the risk of default and drives supply into offshore bond markets, says Morgan Stanley.

Import growth of 44% also beat analyst and market forecasts of 25%.

Seasonally adjusted unemployment rate may have remained unchanged at 4.37%, near a three-year-low.

HSBC says the country won’t suffer a hard landing yet as exports growth has expanded over 20% despite the weaker external demand.

DBS blames weaker demand from Europe and the US, as manufacturers have cut orders amid rising concerns over the debt crisis.

As new home prices rose in all 70 cities for the first time this year.