Asia Roundup
Japan Super-Long Yields Drop After Auction in Sign of Confidence
Japan’s super-long bond yields declined even after relatively lower demand for an auction of 20-year debt, in a sign of confidence among investors, Bloomberg reported.
Yields on 30- and 40-year bonds dropped by as much as five basis points after the auction results Thursday had a bid-to-cover ratio of 3.08, less than both the previous offering and the 12-month average. The yield on 20-year notes fell around two basis points.
India’s Solar Manufacturing Excesses Turn a Boom Into a Glut
India’s solar manufacturing industry is becoming a victim of its own success, Bloomberg reported.
A push to expand local production – encouraged by pandemic disruptions and strained relations with China – has resulted in a 13-fold jump in capacity since 2020, to nearly triple domestic demand.
The scale of that surge prompted the government late last year to urge banks lending to the sector to exercise caution. Manufacturers, meanwhile, are beginning to pull back from lower-value output.
Novaland Made Some Progress After 3 Years of Restructuring, Chairman Says
Novaland has made some progress after three years of restructuring, The Investor reported, citing the Vietnamese developer’s chairman Bui Thanh Nhon.
Novaland faced its worst crisis following Vietnam’s corporate bond market turmoil in 2022, according to The Investor. The disruption froze cashflow and left the group unable to meet its commitments.
Chairman Bui Thanh Nhon said the loss of trust outweighed the financial damage. “This is the biggest loss in Novaland’s more than 32-year journey,” he said, while urging investors to view Novaland shares as a long-term investment.
Indonesia Roundup
Deadly Indonesia Floods Force A Deforestation Reckoning
Deadly flooding in Indonesia has prompted unprecedented government action against companies accused of environmental destruction that worsened the disaster, AFP reported.
But environmentalists who have long warned about the risks of rampant deforestation fear the current response will not solve the problem, and could even make it worse.
Between 2001 and 2024, Sumatra lost 4.4 million hectares of forest, an area larger than Switzerland. Much of that deforestation happened in areas with government permits, and it is not clear that transferring operations to the state will improve matters.
“It’s a concern that the state-backed takeover may not guarantee better environmental practices, and that production may be prioritised over conservation,” Amanda Hurowitz, senior director at conservation group Mighty Earth, told AFP.
S&P Says Reviving Investor Confidence is Key for Indonesia’s Sovereign Support
S&P Global Ratings said reviving investor confidence is key for sovereign support for Indonesia after a warning from index provider MSCI in January jolted the stock market, Reuters reported.
S&P said the direct impact on sovereign credit metrics is limited for now, noting authorities are addressing market structures that have led to foreign portfolio flows.
“The damage to investor confidence is reversible. But a failure to do so would deal a more serious blow to investor confidence than an MSCI reclassification,” S&P analysts said in a report.
Indonesia’s Debt Ratio Hits 40.46% in 2025
Finance Minister Purbaya Yudhi Sadewa said that Indonesia’s government debt remains within a safe threshold, even as the debt-to-gross domestic product (GDP) ratio reached 40.46% at the end of 2025, Jakarta Globe reported.
He emphasized that the government continues to maintain fiscal discipline by keeping the state budget deficit below the 3% of GDP ceiling. Throughout 2025, the deficit was recorded at IDR 695.1 trillion, or 2.92% of GDP.