Overseas investors sold Malaysian stocks for a second straight month in Sep, as the benchmark FTSE Bursa Malaysia KLCI capped its biggest quarterly slump of 12% in almost three years. Foreign funds unloaded RM300m (US$94m) of Malaysian shares last month, according to data on the Kuala Lumpur stock exchange‟s website. Some RM3.8bn flowed out of equities in Aug, the most since at least Oct 09, after four consecutive months of inflows. (BT)
PM Datuk Seri Najib Tun Razak on Friday will announce his government has met its budget target for the second straight year and may either maintain or narrow the fiscal gap in 2012, a senior government source with direct knowledge of the budget said yesterday. The 5.4% of GDP target for 2011 would be hit and more fiscal consolidation could be in store, the source noted. The senior government source also said that 2012 budget was based on a minimum of 5% growth. “Some of the prime minister‟s investment initiatives are paying off and 5% is realistic even with the possibility of a global recession,” the source said. PM is set to present the budget on Friday at 4pm. (Malaysian Insider)
The redevelopment of Kampung Baru will not he unduly delayed by the re-tabling of the amended Kampung Baru Development Corporation Bill, said Senator Datuk Abdul Rahim Rahman. The new amended Bill was tabled, debated and passed at the Dewan Rakyat sitting yesterday. With the Bill passed, it would then be gazette and by 1Q12, Kampung Baru Corp (KBC) would be set up, he said. (Starbiz)
US mortgage applications decreased 4.3% from one week earlier, according to data from the Mortgage Bankers Association‟s (MBA) survey for the week ended 30 Sep (+9.3% in the prior week). The Refinance Index decreased 5.2% from the previous week. The seasonally adjusted Purchase Index decreased 0.8% from one week earlier. (MBA)
US employers announced the most job cuts in more than two years in Sep, led by planned reductions at Bank of America Corp. (BAC) and in the military. Announced firings jumped 212%, the largest increase since Jan 09, to 115,730 in Sep, according to Challenger, Gray & Christmas Inc. On a mom basis, job-cut announcements climbed 126% in Sep. Cuts in government employment, led by the Army‟s five-year troop reduction plan, and at Bank of America accounted for almost 70% of the announcements. Financial companies announced 31,167 cuts, the second most layoffs. (Bloomberg)
US companies added 91,000 jobs in Sep (+89,000 in Aug), according to data from ADP Employer Services. Economists called for an advance of 75,000. There was an increase of 1,000 workers in goods-producing industries last month, which include manufacturers and construction companies. Employment at factories fell by 5,000. Service providers added 90,000 workers in Sep, figures showed. (Bloomberg)
The US ISM non-manufacturing index, which tracks services and construction sector activity, fell to 53 in Sep (53.3 in Aug). Levels above 50 imply growth. The reading matched economists‟ expectations. (Bloomberg)
Markit's Eurozone Services Purchasing Managers' Index (PMI) fell to 48.8 in Sep (51.5 in Aug), its lowest reading since Jul 09 and below an earlier flash reading of 49.1. It is the first month the index has been below the 50 mark that divides growth from contraction since Aug 09. (BBC)
Eurozone composite PMI fell to 49.1 in Sep (50.7 in Aug), its lowest level since Jul 09 and down from a flash estimate of 49.2. (Reuters)
European retail sales declined 0.3% mom in Aug (+0.2% in Jul), the Eurostat said. The reading matched economists‟ expectations. On a yoy basis, sales dropped 1% yoy (-0.4% in Jul). (Bloomberg)
Thailand‟s central bank is ready to use monetary policy to boost the economy if necessary amid rising risks to growth, Governor Prasarn Trairatvorakul said. “If the situation changes and the economy needs to be stimulated, monetary policy is ready to do the job,” he said. Thailand‟s baht is expected to strengthen next year on capital inflows to Asia as economic growth in Europe slows, he said. (Bloomberg)
Thailand‟s worst floods in at least 50 years may slow economic growth and cause US$1.6bn of damage, posing the first leadership test for Prime Minister Yingluck Shinawatra since she took office two months ago. (Bloomberg)
Philippine inflation accelerated in Sep after transport and utility costs rose. Consumer prices increased 4.8% yoy (4.7% in Aug). The median estimate was for a 4.9% rate. (Bloomberg)
India‟s seasonally adjusted HSBC Service Sector Business Activity Index, prepared by Markit, was at 49.8 in Sep, down from 53.8 in Aug. The level is the lowest since Apr 09. (Wall Street Journal, Bloomberg)
M3 in India, which mainly comprises currency in public circulation bank deposits and money invested in other saving plans, stood at INR68.6tr (US$1.39tr) as on 23 Sep, an increase of 16.3% yoy. India‟s reserve money outstanding rose 16.9% yoy, or INR2tr to INR14tr. (Bloomberg)
The Indonesian government is considering reactivating the crisis alert status that it deactivated recently as negative external sentiment hit the nation‟s financial markets hard. The alert status indicates the need to utilize the coordinated crisis management protocol between the government, Bank Indonesia (BI) and related institutions which would step into the market to calm volatility and stabilize prices. (Jakarta Post)
Vietnam’s dong fell as the central bank lowered its daily reference rate for the first time since Aug, fixing the reference at VND20,638 per US$1, compared with VND20,628 yesterday, according to its website. (Bloomberg)
Vietnam’s central bank met 12 banks on Tuesday and pledged to stabilise interest rates by the year end. (Reuters)
Thailand‟s government maintained an economic growth target of 4% this year, even floods damage agricultural crops and the global recovery falters. (Bloomberg)
The US Senate is expected to vote on Thursday on legislation designed to press China to let its yuan currency rise in value, setting the stage for debate in the House of Representatives, whose leader has called the bill a "dangerous" overreach by lawmakers. (Reuters)
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