Bank of Japan Poised for Historic Rate Hike as Inflation Pressures Persist 
New Zealand Budget Outlook Shows Prolonged Deficits Despite Economic Recovery Hopes 
U.S. Dollar Slips Near Two-Month Low as Markets Await Key Jobs Data and Central Bank Decisions 
China’s November Economic Data Signals Slowing Industrial Output and Weak Consumer Demand 
Trump Orders Blockade of Sanctioned Oil Tankers, Raising Venezuela Tensions and Oil Prices 
Bank of Korea Downplays Liquidity’s Role in Weak Won and Housing Price Surge 
Silver Prices Hit Record High as Safe-Haven Demand Surges Amid U.S. Economic Uncertainty 
Asian Fund Managers Turn More Optimistic on Growth but Curb Equity Return Expectations: BofA Survey 
Japan PMI Data Signals Manufacturing Stabilization as Services Continue to Drive Growth 
Singapore’s non-oil domestic exports rose a better-than-expected 11.8 percent y/y (4.3 percent m/m s.a.) in July, up from June’s 1.1 percent y/y (-10.8 percent m/m s.a), beating market consensus forecast. While electronics exports continued to contract at a more modest 3.8 percent y/y (June: -8.6 percent y/y), non-electronics exports surged 18.8 percent (June: 4.5 percent y/y), mainly attributable to pharmaceuticals (109.2 percent versus 19.1 percent previously).
Electronics exports were dragged down by ICs, diodes & transistors and parts of PC, whereas non-electronics exports saw contributions from food preparations (120.4 percent) and primary chemicals (41.3 percent y/y) in addition to pharmaceuticals.
However, pharmaceuticals output and exports can be rather volatile depending on the turnaround for each production cycle, so it is unclear how long this current uptick will sustain beyond the immediate few months ahead.
"Our 2018 NODX growth forecast is 4-5 percent y/y, which is above the IESingapore’s recently upgraded forecast of 2.5-3.5 percent y/y," OCBC Bank commented in its latest research report.
Meanwhile, the July NODX print marks a healthy start for NODX to 2H18 and brought the NODX growth for the first seven months of 2018 to 6.2 percent y/y. However, the higher 9.7 percent y/y NODX growth seen for August-December 2017, and the escalating US-Sino trade war may still pose some headwinds for NODX growth in the coming months.
